Nvidia is in talks to provide multi-billion dollar debt financing guarantees for Nscale’s West Virginia AI data center project.
The campus, featuring Anthropic as a primary tenant for its initial buildings, underscores the heavy financial interlocking between hardware providers and AI infrastructure developers.
Under the terms of the proposed deal, if Nscale is unable to repay the construction costs, Nvidia will step in to take over the facilities and help find a buyer and a new tenant. At the same time, Nscale is preparing to go public at a valuation that could reach $35 billion.
The huge project sizes and Nvidia chips
The first building in the complex in West Virginia will have a capacity of 460 megawatts and is expected to use Nvidia's new Vera Rubin chips. The project is directly involving Anthropic, which has already signed a contract worth $44,6 billion for the first building, while the two sides are already discussing a second similar deal worth about $45 billion.
Nscale’s journey includes other developments. In August, it had about 25.000 advanced AI chips in operation, out of a total of nearly 500.000 it plans to deploy. In the infrastructure sector, projects in West Virginia caused mudslides that flooded nearby homes more than once, but the site secured state certification in September. In England, by contrast, Microsoft pulled out of a planned Nscale project because grid connection was delayed to the 2030s.
Nvidia's stance and market concern
Nvidia has provided a total of about $170 billion in investment and credit support to similar companies and large customers, including a $1 billion financing to Nscale in September.
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But the mood in the industry is tense. Shares of companies that rent computing power, such as CoreWeave, Nebius and IREN, fell more than 30% in October. At the same time, Blackstone warned investors that Anthropic could receive a below-investment grade credit rating after it goes public.
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