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On the one hand, Huida plans to provide credit support for Nscale’s AI data center, and on the other hand, it will complete a US$1 billion investment in Naver to strengthen its layout in the field of AI computing power and infrastructure.
Huida (Nvidia) is expanding its AI infrastructure layout through investment and credit support. According to people familiar with the matter, the company is in talks for Anthropic to provide a credit guarantee for the data center used by Enscale; The transaction is also scheduled to close next week.south korea Naver’s US$1 billion investment makes it the third-largest shareholder.
This credit support will help guarantee the electricity and construction costs of an AI data center park in West Virginia, US, Bloomberg reported, citing people familiar with the matter. The complex will use Huida chips and is expected to be used by Anthropic.
The Information previously reported that Huida and Enscale are negotiating a credit guarantee that could amount to billions of dollars.
Enscale, which is headquartered in the United Kingdom, is rapidly working towards building several large-scale data centers, and the West Virginia campus is listed as a major project. Huida is already an investor in Nscale and other AI computing power providers. If it now provides credit guarantees, it will further participate in the formation and financing arrangements of these companies.
Huida CEO Jensen Huang said this month that he had asked Enscale to “work around the clock” to overcome difficulties in opening some data centers. Bloomberg also previously reported that Enscale had negotiated a second $45 billion collaboration agreement with Anthropic to provide Anthropic the use of a second data center at its West Virginia campus.
Enscale is also promoting an initial public offering (IPO), but some investors believe the company’s US$30 billion listing valuation target is too high.
The market for new cloud players has been turbulent recently. Firmus Grid, another Australian company that received investment from HUDA, has abandoned its plans to list in Australia with a valuation of US$30 billion; South Korea’s Alice also did not perform well on the first day of listing.
Although these companies have huge demand for AI computing power, they still need to raise money, complete construction, and obtain electricity before they can fulfill customer contracts. If HUIDA offers a credit guarantee, it will help construction, but it may also increase risk.
Naver will become the third largest shareholder after completing the investment next week
On the other hand, Naver announced on Friday that Huida is set to complete a US$1 billion investment next Friday. Nevers will determine the number of ordinary shares to be acquired by Huida through the capital increase on Tuesday.
The announcement said Naver has secured at least US$9 billion in computing infrastructure to fund this capital increase. After the completion of the investment, Huida will become Naver’s third largest shareholder. Currently, the largest shareholder is South Korea National Pension, which holds 9.49% shares, followed by BlackRock, which holds 7.31% shares.
The investment is part of a strategic collaboration announced by Naver and Huida in July. Both sides plan to build large-scale AI factories to serve the global market.
From equity investment in Naver to negotiating credit guarantees with Nscale, Huida is supporting the expansion of AI computing power in various ways. For new cloud players, in addition to chip supply, whether they can obtain sufficient funding and launch the data center on schedule is also important for their development.
Summary FAQ
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People familiar with the matter said the credit assistance negotiated by HUDA could be used to guarantee the electricity and construction costs of an AI data center park in West Virginia to help Enscale promote its flagship project for use by Anthropic.
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Naver announced that Huida is scheduled to complete a US$1 billion investment next Friday, and will first confirm the number of ordinary shares acquired through a capital increase on Tuesday. After the transaction is completed, Huida will become Naver’s third largest shareholder.
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Huida not only sells chips, but also supports computing power suppliers through equity investment and credit guarantee, helping them obtain financing, construction, and power to accelerate the implementation of AI data centers and expand the ecosystem.
