Nvidia is in discussions to provide residual value credit guarantees for billions in debt financing for Nscale's West Virginia AI data center, which will house Anthropic under a $44.6 billion contract. The proposed deal aims to backstop construction and power costs as Nscale pursues a $35 billion IPO despite project delays, flooding issues, and a lost Microsoft project. It comes as neocloud stocks tumble and Anthropic prepares for an IPO.
Nvidia debt guarantee proposal for Nscale
- ▪Under a proposed residual value guarantee, Nvidia would step in to temporarily take over Nscale's West Virginia facility and secure a new tenant if Nscale defaults on construction payments
- ▪Nvidia is in discussions to provide credit guarantees for billions of dollars in debt financing covering construction and power costs for Nscale's AI data center campus in West Virginia
Anthropic contracts for Nscale West Virginia campus
- ▪Anthropic signed a $44.6 billion contract for a first 460-megawatt building at Nscale's West Virginia campus, which is scheduled to run Nvidia's next-generation Vera Rubin chips
- ▪Anthropic and Nscale are in negotiations for a second contract valued at approximately $45 billion for an additional building at Nscale's West Virginia campus
Nvidia financial and operational involvement with Nscale
- ▪Nvidia Chief Executive Officer Jensen Huang urged Nscale executives to work around the clock to overcome challenges in bringing data center facilities online
- ▪Nvidia has provided approximately $170 billion in total investments and credit support to neocloud firms and major AI clients, including a $1 billion convertible financing commitment to Nscale in September 2026
Neocloud market turmoil
- ▪Australian neocloud Firmus Grid abandoned a $30 billion initial public offering while South Korea's Elice experienced a rocky trading debut
- ▪Shares of neocloud providers CoreWeave, Nebius, and IREN each dropped by more than 30% in October 2026 amid heightened investor concern over AI infrastructure spending
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