Nvidia is in talks to guarantee billions of dollars in debt financing for Nscale's planned Anthropic data center in West Virginia, according to a report by The Information. Bloomberg later corroborated the report, per the source material.
Under a residual value guarantee, Nvidia would step in if Nscale defaulted on construction payments. It would temporarily take over the facility and help find a buyer and new tenant, according to The Information. The arrangement would help Nscale secure financing for the electricity and construction costs of its West Virginia campus. The source describes this as, in essence, the chipmaker co-signing a customer's loans.
Anthropic has signed a $44.6 billion contract for the first building alone, according to Nscale's IPO filing. That building is a 460-megawatt facility expected to use Nvidia's next-generation Vera Rubin chips. The companies are also discussing a second deal worth roughly $45 billion for another building.
Nvidia's earlier support for cloud providers has mostly covered leases and chip purchases, not construction, the report says. Nvidia has extended roughly $170 billion in investments and credit support to neoclouds and large customers, according to The Information, including $1 billion in convertible financing committed to