Nvidia Corp ( NASDAQ:NVDA , XETRA:NVD ) is in talks to provide billions of dollars in credit guarantees to AI cloud provider Nscale to help finance power infrastructure and construction of a data centre in West Virginia that Anthropic plans to use, according to a report by The Information.
The proposed arrangement, which has not been signed and whose terms could still change, would support debt funding for the project without requiring Nvidia to provide the money upfront.
Wedbush said the move could help sustain financing for AI infrastructure projects while supporting demand for Nvidia's own products, as a large share of neocloud capital expenditure goes towards its chips and other equipment.
The brokerage firm noted that Nvidia chief executive Jensen Huang had recently said about 80% of neocloud capital expenditure was directed towards Nvidia products, meaning credit guarantees could indirectly support the company's sales by keeping data centre projects funded.
Anthropic agreed in August to spend $45 billion renting computing capacity at the Nscale campus, according to the report, while Nscale is also discussing a second deal of about 460 megawatts with a similar value.
Wedbush said the timing was notable amid concerns about debt financing at other Nvidia-backed neocloud providers, including CoreWeave and Firmus, and suggested guarantees could offer a more capital-light alternative to strategic investments.
The analyst added that guarantees would carry contingent exposure if projects failed to meet their obligations, although they would not require an immediate cash outlay.
Wedbush maintained that demand for AI computing capacity was generating returns on data centre investment at an accelerating rate, and said it expected the technology and finance industries to find ways to fund and build additional capacity.
Nvidia's proposed support therefore highlights how chipmakers and technology companies are becoming increasingly involved in financing the infrastructure needed to expand AI computing.
