Nscale buys Anyscale as it seeks to own more of the AI compute stack
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- Nscale is buying Anyscale for $1.65 billion (per Bloomberg, citing an anonymous source) to co-design the software and infrastructure layers of its AI compute stack
- Anyscale pivoted from general distributed computing to AI workload scaling after GPT-3's 2022 launch, building its platform around the open-source Ray framework for serving, training, and orchestrating LLMs
- Anyscale reported 70% sequential revenue growth in its most recent quarter and was last valued at $1.38 billion in a 2022 Series C
- Nscale raised $2 billion in a Series C this March at a $14.6 billion valuation, with investors including Nvidia, Nokia, Blue Owl, Dell, and Norwegian industrial giant Aker
- Anyscale will keep its branding and continue serving existing customers, with all approximately 200 employees joining Nscale
- Nscale has secured compute and data center partnerships with Microsoft, British Telecom, and Nordcraft as part of its broader build-out
Why it matters: Nscale is racing to capture more of its customers' AI spending by controlling everything from energy to orchestration, and the $1.65B Anyscale deal — coming just months after a $2B raise at a $14.6B valuation — shows how neoclouds are swallowing software layers that used to sit with hyperscalers and independent tooling vendors.
