Nvidia may cosign billions in loans for Nscale AI data center in West Virginia

Nvidia is in discussions to cosign billions of dollars in debt financing for Nscale's planned AI data center in West Virginia, TechCrunch reported, citing The Information and Bloomberg.

The arrangement would involve Nvidia providing a residual value guarantee, stepping in if Nscale defaults on construction payments, temporarily taking over the facility, and helping find new buyers or tenants.

This move would help Nscale secure funding for electricity and construction costs for its West Virginia campus, which has faced challenges including runoff flooding nearby homes.

Nscale has a $44.6 billion contract with Anthropic for the first building at the campus, expected to use Nvidia's next-generation Vera Rubin chips, with talks ongoing for a second $45 billion building.

Despite plans to deploy nearly 500,000 advanced AI chips, Nscale had only about 25,000 operational in August and is seeking to go public with a valuation up to $35 billion amid concerns about its ability to deliver on projects.