Tech · 4 d ago
Nvidia weighs guaranteeing debt for an AI data centre in West Virginia
Anthropic's contract for the first building
44.6 US$ billion
Nvidia is in talks to guarantee billions in debt financing for Nscale's planned data centre, according to reports. Nscale is building it for Anthropic, which signed a US$44.6 billion contract for the first building, according to Nscale's IPO filing.
How the guarantee would work
Residual value guarantee
If Nscale defaulted on construction payments, Nvidia would step in, temporarily take over the facility and help find a buyer and a new tenant, according to reports.
Nscale had about 25,000 advanced AI chips running in August, a fraction of the nearly 500,000 it plans to deploy. Microsoft pulled out of a planned Nscale site in England this month after its grid power was pushed into the 2030s.
Why it matters
Shares of CoreWeave, Nebius and IREN had each fallen more than 30 per cent in October as of last week. Nscale is seeking to go public at a valuation of up to US$35 billion.
