Nvidia weighs playing the cosigner for Nscale’s AI data center in West Virginia

Why it matters

Nvidia is negotiating to guarantee billions in debt financing for Nscale's planned Anthropic data center in West Virginia, according to The Information, with Bloomberg corroborating the report. Under a residual value guarantee, Nvidia would cover construction payments if Nscale defaulted, temporarily take over the facility, and help find a buyer and new tenant. The arrangement marks a shift from Nvidia's past support, which covered leases and chip purchases rather than construction. The deal would help Nscale fund electricity and construction costs for the campus, where Anthropic has contracted for the first building and is discussing a second. Nscale has faced delays, flooding complaints from the site, and a Microsoft withdrawal from an English project, while seeking a public listing. Anthropic, meanwhile, filed to go public amid warnings about a possible below-investment-grade credit rating. The talks show how chipmakers are increasingly underwriting the AI buildout as investors grow uneasy with the sector's debt-heavy financing.