Nvidia in talks to guarantee billions in Nscale debt for a 460-megawatt data center Anthropic plans to use

Nvidia is in talks to offer AI cloud provider Nscale billions of dollars in credit guarantees to support debt funding for a data center, according to a report by The Information^1,5.

The facility is one that Anthropic plans to use, according to people familiar with the matter².

The guarantees would back debt that Nscale would raise to build a second 460-megawatt phase of its Monarch campus⁴.

The report described the Anthropic project as worth $45 billion³.

No agreement has been announced, and the companies are described as being in discussions^1,2.

Why it matters to investors

A credit guarantee would put Nvidia’s own balance sheet behind a customer’s borrowing, extending a pattern of investment in the companies that buy its chips⁸.

Nvidia has invested in “neocloud” companies such as CoreWeave and Nebius, which rent out computing power built on Nvidia chips, a strategy that has been questioned as either smart or a bubble risk⁸.

Nscale is itself Nvidia-backed and is preparing an initial public offering⁶.

Reported valuations for that listing differ: one account puts the IPO at $35bn, another describes a bid for a $30 billion IPO^6,7.

The project behind the listing faces difficulties: its West Virginia data centre campus has been hit by construction issues, local opposition and financing risks⁶.

Nscale’s chief executive has been described as unproven, and the company is attempting its listing amid turmoil in the AI sector, including CoreWeave’s credit collapse⁷.

The talks come as lenders turn cautious, and SpaceX chief executive Elon Musk said that over 200 neoclouds might not survive as lenders become hesitant to keep issuing debt⁹.

What to watch

The size and terms of any guarantee will show how much risk Nvidia is willing to take on to keep its customers’ build-outs funded^1,2.

The outcome also bears on Anthropic, which plans to use the facility, and on the timing of the second 460-megawatt phase^2,4.

Nscale’s IPO, valued at between $30 billion and $35bn in reported accounts, will test investor appetite for neocloud companies after CoreWeave’s credit collapse^6,7.

Lenders’ willingness to keep financing neoclouds remains the wider question for the sector, given the warning that over 200 of them might not survive⁹.

Any move by Nvidia to formalise its support would deepen the links between the chipmaker and the cloud providers that depend on its products^1,8.