Nvidia weighs guaranteeing Nscale’s West Virginia AI data center debt
Original title: Nvidia weighs playing the cosigner for Nscale’s AI data center in West Virginia
A residual-value guarantee would cover Nscale construction debt for a campus whose first building has a $44.6 billion Anthropic contract.
Nvidia is in talks to guarantee billions in debt for AI cloud provider Nscale’s planned Anthropic data center in West Virginia, The Information reported and Bloomberg later corroborated. Under a residual value guarantee, Nvidia would step in if Nscale defaulted on construction payments, temporarily take over the facility, and help find a buyer and tenant. Anthropic’s signed contract covers the first 460-megawatt building, expected to use Nvidia’s Vera Rubin chips, and the companies are discussing a second deal of roughly $45 billion.
Unconfirmed: The financing talks are reported by The Information and Bloomberg, not confirmed by Nvidia or Nscale.
- Nscale’s IPO filing cites a $44.6 billion Anthropic contract for the first building.
- Nvidia committed $1 billion in convertible financing to Nscale in September.
- Nscale had about 25,000 advanced AI chips running in August versus nearly 500,000 planned.
- Microsoft pulled out of a planned Nscale site in England this month.
- Nscale is seeking an IPO valuation of up to $35 billion.
- Vendors
- Nvidia
- Products
- Vera Rubin
- Countries
- United States
From the original article
3 min read at techcrunch.com
When investors get nervous about AI spending, it helps to have the chipmaker that sells the chips offer to cosign the loan.
By Aditya Mehta · techcrunch.com
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