Nvidia is in talks to guarantee billions of dollars of Nscale's debt for the West Virginia data centre Anthropic plans to use, The Information reports

Nvidia is in talks to give the AI cloud provider Nscale billions of dollars in credit guarantees, The Information reported on 29 October, according to Reuters. The support would help fund power infrastructure and construction at Nscale's AI data centre in West Virginia, which Anthropic plans to use, Reuters said. Reuters added that the deal is not signed and its terms could change, and that Nvidia, Nscale and Anthropic did not immediately respond.

TechCrunch described the structure as a residual value guarantee: Nvidia would step in if Nscale defaulted on construction payments, and could temporarily take over the facility. “In essence, the chipmaker would be co-signing a customer’s loans,” TechCrunch wrote.

On 20 October the Switchboard ran Bloomberg's report that Nscale was in talks to sell Anthropic about $45bn more of computing, for a second building at the campus. The two outlets give slightly different figures for the size of Anthropic's contract, so none is given here.

The talks show how the AI build-out is being financed. Nvidia already sells the chips that go into such buildings; guaranteeing the debt would also put its balance sheet behind its customers' ability to finish them. TechCrunch said the talks come as investors grow jittery about the amounts of money involved.

• Reported Nvidia is in talks to give Nscale billions of dollars in credit guarantees for the West Virginia data centre Anthropic plans to use; nothing is signed, The Information reported, according to Reuters. Reuters, via The Star
• Reported The support would be a residual value guarantee under which Nvidia would step in if Nscale defaulted on construction payments, TechCrunch reported. TechCrunch