Nvidia is in talks to give Nscale billions of dollars in credit guarantees for a data center earmarked for Anthropic, The Information reports

Nvidia is in talks to give AI cloud provider Nscale billions of dollars in credit guarantees to support debt funding for a data center earmarked for Anthropic, The Information reported on Thursday, citing people with knowledge of the talks, according to Reuters. The deal has not been signed and terms could still change, the report said, as relayed by Reuters.

Reuters said the credit support would help fund power infrastructure and construction of Nscale’s AI data center in West Virginia, which Anthropic plans to use. It said Nvidia is an investor in UK-based Nscale. Reuters said Nvidia, Nscale and Anthropic did not immediately respond to requests for comment.

Bloomberg reported the same talks, citing a person familiar with the matter who asked not to be identified because the discussions are private. Bloomberg said the support would help backstop electricity and construction costs for a West Virginia campus that will be equipped with Nvidia chips, and that Nvidia is already an investor in Nscale and other AI computing providers. AI Tech Daily has not read The Information’s paywalled article, so the details here come from Reuters and Bloomberg.

Reuters recalled that Anthropic struck a deal in August to spend $45 billion to rent computing power from Nscale’s West Virginia campus. It said Nscale is also in talks to sell about 460 megawatts of AI computing power to Anthropic in another deal that could also be worth about $45 billion. AI Tech Daily’s earlier report, citing Bloomberg and CNBC, put the August lease at about $45 billion and about 460 megawatts, so the reports differ on whether the 460 megawatts belong to the August deal or a separate one. Nscale’s September 18 IPO filing does not settle it: it says the four Anthropic agreements signed August 25 provide for aggregate payments of up to about $44.6 billion at its Monarch campus in West Virginia, and its site table lists one U.S.-owned site with 460 megawatts of contracted IT capacity without naming the site or the customer. Reuters did not say which deal the guarantees would back.

The same filing said Nscale had not obtained binding commitments for any of the financings required to fund performance under the Anthropic agreements, and that those financings remained in process. Reuters said the report comes as CoreWeave and Firmus, both backed by Nvidia, have been hit by concerns about debt financing behind the AI buildout. Nvidia has been named as a possible funder of Nscale before: Bloomberg reported in September that Nscale was seeking to secure about $2 billion in financing from Nvidia as part of a pre-IPO raise of up to $3.5 billion, according to AI Tech Daily’s earlier report.

Reuters’ version of the report did not say how large the guarantees would be beyond “billions of dollars,” what form they would take, or when a deal could be signed.

Nvidia is in talks to give Nscale billions of dollars in credit guarantees for a data center earmarked for Anthropic, The Information reports

Sources