Nokia, Nscale Partner to Boost AI Data Centers with $110M Funding

Nokia has announced a strategic collaboration with Nscale to accelerate the deployment of AI data centers. This partnership aims to meet the growing demand for AI infrastructure by providing advanced network technology for Nscale's AI-ready data centers. Nokia will also participate in Nscale's Series B funding round, further solidifying their commitment to this initiative.

Nscale, a UK-based AI infrastructure startup, has successfully raised 110 million dollars in funding from investors including Nvidia, Dell Technologies, and Nokia. This capital will be used to expand data center operations across Europe, North America, and the Middle East. Nscale's data centers are designed to support AI with robust networking, storage, and computing capabilities. The company has already established partnerships with prominent AI developers, including OpenAI and Microsoft.

Last week, Nscale unveiled plans to collaborate with Nvidia and OpenAI on the "Stargate UK" AI infrastructure project in the UK. This project is expected to deploy tens of thousands of Nvidia GPUs. Additionally, Nscale is planning to work with Microsoft to build the UK's largest AI supercomputer. In the current Series B funding round, the Norwegian industrial giant Aker invested 28.5 million dollars, acquiring approximately 9.3% of Nscale's shares. Aker had previously collaborated with Nscale and OpenAI to launch the "Stargate Norway" data center project in northern Norway, which aims to deploy 100,000 Nvidia GPUs and utilize hydroelectric power to create one of Europe's lowest-carbon AI computing bases.

Since the public release of ChatGPT by OpenAI at the end of 2022, global tech companies have been increasingly investing in AI, driving a surge in demand for data centers. Startups providing computing power and infrastructure are among the biggest beneficiaries of this investment boom. Nscale's latest funding round also attracted participation from Sandton Capital, Blue Owl Managed Funds, Fidelity Investments, G Squared, Point72, and T.Capital, making it one of the largest funding rounds in European history.

Nscale's CEO highlighted the critical role of physical infrastructure, such as data centers and GPUs, in supporting AI advancements. The company is building one of the largest platforms of its kind globally, designed to meet the escalating demand and achieve unprecedented breakthroughs. Nscale offers scarce and highly sought-after computing resources, enabling the rapid construction of secure, compliant, and energy-efficient AI infrastructure for its clients.

Nokia's CEO emphasized the accelerating demand for global AI infrastructure and expressed that this collaboration will further strengthen Nokia's position in the field. The partnership between Nokia and Nscale is expected to drive significant advancements in AI data center deployment, leveraging Nokia's advanced network technology to support Nscale's AI-ready data centers. This collaboration underscores the growing importance of AI infrastructure in the tech industry and the strategic investments being made to meet the increasing demand for AI capabilities.