Nvidia is in talks to guarantee billions of dollars in debt financing for Nscale's planned Anthropic data center in West Virginia, according to The Information. Bloomberg later corroborated the report.
Under what is known as a residual value guarantee, Nvidia would step in if Nscale defaulted on construction payments. Nvidia would temporarily take over the facility and help find a buyer and new tenant, according to The Information. The arrangement would help Nscale finance electricity and construction costs for its West Virginia campus.
Anthropic has signed a $44.6 billion contract for the project's first building, according to Nscale's IPO filing. The companies are also discussing a second deal worth roughly $45 billion for another building, according to the report.
The report says Nscale has struggled to deliver. The company had about 25,000 advanced AI chips running in August, against a plan to deploy nearly 500,000. Runoff from the West Virginia construction site has flooded nearby homes more than once, according to the report. The project won state certification in September.
Nvidia has committed roughly $170 billion in investments and credit support to neoclouds and large customers, according to The Information. That total includes $1 billion in convertible financing for Nscale in September.