Nvidia is weighing billions of dollars in credit guarantees to support Nscale's $45bn data centre deal with Anthropic.
Nvidia is in talks to provide billions of dollars in credit guarantees to AI cloud provider Nscale, a move that could help the British company secure debt financing for a data center project in West Virginia intended to supply computing capacity to Anthropic, according to a report by The Information.
The proposed support would help finance the power infrastructure and construction of Nscale's AI data center campus, which Anthropic plans to use. Nvidia is already an investor in Nscale, giving the chipmaker a direct financial interest in the expansion of the cloud provider's infrastructure business.
The discussions have not resulted in a signed agreement, and the terms could still change, The Information reported on Thursday, citing people familiar with the talks.
The potential guarantees come as the cost of building AI infrastructure continues to rise, forcing data center operators to seek large amounts of external financing. Credit support from Nvidia could make it easier for Nscale to borrow by reducing lenders' exposure to the risk that the company may struggle to meet its repayment obligations.
The arrangement would also deepen Nvidia's involvement in financing the infrastructure required to expand the market for its processors. Beyond supplying the chips used in AI systems, the company has invested in cloud providers and other infrastructure businesses that depend on access to its technology.
Anthropic agreed in August to spend $45 billion renting computing power from Nscale's West Virginia data center campus. The commitment is part of the substantial infrastructure spending required by the Claude developer as demand for its AI models grows.
Nscale is also in discussions to sell Anthropic approximately 460 megawatts of AI computing capacity under a separate agreement that could be worth another $45 billion, according to the report.
The potential scale of these commitments underlines the financing demands of the AI infrastructure market. Data center projects require substantial upfront investment in land, buildings, electricity supply, cooling systems and specialized computing equipment. Revenue from customers may be secured through long-term contracts, but operators still need financing to build capacity before it becomes operational.
For Nscale, Nvidia's proposed guarantees could help bridge that funding gap. The support may improve the terms on which the company can access loans or debt markets, although the final structure and extent of Nvidia's commitment remain unclear.
The arrangement also raises questions about the relationship between infrastructure suppliers, investors and lenders in the AI economy. Nvidia benefits when cloud providers expand their computing capacity and purchase more of its processors. Supporting their access to capital could therefore help sustain demand for its products, while exposing the company to additional financial risks if projects encounter delays or customers fail to meet their commitments.
The discussions come as investors and lenders increasingly examine how AI infrastructure companies are funding their expansion. Nvidia-backed operators such as CoreWeave and Firmus have faced pressure from concerns about the availability and cost of debt financing for large-scale data center investments.
The industry's financing model relies on the ability of operators to raise capital, secure long-term customers, and bring computing capacity online within projected timelines. Delays in power connections, construction, or equipment delivery can increase costs and postpone the revenue needed to service debt.
Credit guarantees could help address one part of that challenge by giving lenders greater confidence in a borrower's ability to meet its obligations. However, guarantees do not eliminate the underlying cost of construction or the commercial risks associated with operating large data centers.
Nvidia's possible involvement is remarkable because it would extend the company's role beyond supplying the technology that powers AI workloads. Its investment in Nscale and potential credit support would connect its chip business more directly to the financing of infrastructure built around its products.
The proposed arrangement is expected to help secure the computing capacity needed to develop and operate Anthropic's AI models, and also improve access to the capital required to deliver one of Nscale's largest infrastructure commitments.
However, analysts warn that while long-term customer agreements can provide visibility into future demand, they do not automatically guarantee that projects will be completed on budget or generate returns quickly enough to support their financing.