Nscale buys Anyscale as it seeks to own more of the AI compute stack
British neocloud provider Nscale is acquiring AI software startup Anyscale for $1.65 billion. The deal aims to integrate Anyscale's workload management and orchestration tools into Nscale's existing infrastructure to better capture AI compute spending.
Why it matters
This acquisition signals a trend of vertical integration in the AI infrastructure market, as cloud providers seek to control both the hardware and the software layers of AI development.
In a bid to capture more of its customers’ AI spending, British AI neocloud Nscale is buying software startup Anyscale , which helps companies scale their AI workloads across data centers and servers.
Nscale is paying $1.65 billion for Anyscale, Bloomberg reported , citing an anonymous source.
Founded by the same team that built the open-source Project Ray distributed programming Python framework, Anyscale started by building a platform that allowed people to run projects that needed large amounts of computing power.
But after the launch of GPT-3 in 2022 brought AI into the spotlight, the company pivoted to offer scaling services for serving and training large language models, data curation, inferencing, reinforcement learning, and other tasks. The company’s platform is built around Ray, offering developer tools, observability and orchestration.
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