Nvidia negotiates billion-dollar debt guarantee for Nscale's West Virginia AI center

Nvidia is in talks to guarantee billions of dollars in debt financing for Nscale’s planned Anthropic AI data center in West Virginia, a move that would see the chipmaker co‑sign a customer’s loans to keep the project afloat amid growing investor wariness. The talks were first reported by The Information on Thursday and later corroborated by Bloomberg. Anthropic has already signed a $44.6 billion contract for the first building, according to Nscale’s IPO filing, and the financing guarantee would cover construction and electricity costs for the campus.

The deal reflects mounting pressure on the AI‑cloud sector to secure funding for massive build‑outs while investors grow jittery about the scale of spending. Neoclouds like Nscale rent out AI compute without deep cash reserves, and many have seen their share prices tumble more than 30 % in recent weeks. Nvidia, which has already extended roughly $170 billion in investments and credit support to the sector, previously offered lease and chip‑purchase assistance but not construction guarantees. A $1 billion convertible financing commitment to Nscale was made in September, underscoring Nvidia’s willingness to deepen its financial ties.

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 or new tenant. The first 460‑megawatt building at the West Virginia site is slated to use Nvidia’s next‑generation Vera Rubin chips, and a second deal worth about $45 billion for another building is also under discussion. Nscale, which aims to go public at a valuation of up to $35 billion, has struggled to scale its hardware fleet, running only about 25,000 advanced AI chips in August against a target of 500,000. The West Virginia campus has faced local setbacks, including runoff flooding nearby homes, though it secured state certification in September after months of negotiations.

If the guarantee is approved, Nvidia would secure a major customer for its chips while helping Nscale meet its ambitious rollout schedule. Anthropic’s involvement, as one of the largest buyers of AI compute, likely motivates Nvidia’s interest. The arrangement also comes as Anthropic itself wrestles with financing its rapid expansion, adding another layer of complexity to the high‑stakes AI infrastructure race.