Nvidia Slashes Financial Guarantee for OpenAI's Ohio Data Center from $250B to Under $120B

Nvidia cuts $130B+ from OpenAI's Ohio 10GW campus guarantee: Reports

Nvidia has reportedly cut its proposed financial guarantee for OpenAI's massive Ohio data center project to less than $120 billion. The chipmaker had considered a guarantee of about $250 billion in late July. Investor concerns over the financial risks tied to the project have now prompted Nvidia to reconsider the scale of its backing. The change could reshape one of the most ambitious AI infrastructure projects in the US. OpenAI plans to build a 10-gigawatt data center campus in Pike County, Ohio. Nvidia's proposed support would not amount to a direct $250 billion investment. Instead, the company would reportedly guarantee financing arranged by lenders for the planned campus. That structure could help OpenAI secure large amounts of debt. It could also give lenders greater confidence in financing a project tied to a company without an investment-grade credit rating. The original proposal raised questions about how much financial risk Nvidia should assume. Investors have increasingly scrutinized the chipmaker's expanding financial ties with major AI customers. Nvidia is also discussing a separate arrangement involving as much as $350 billion in AI chips for the facility. That proposal would remain separate from the data center guarantee. The distinction matters because the two commitments would carry different financial structures. Nvidia would supply computing hardware through the chip arrangement instead of directly funding construction. SB Energy, SoftBank's energy subsidiary, is developing the Ohio campus for OpenAI. The site could eventually consume 10 gigawatts of power at full scale. That figure would make the project one of the largest data center developments ever proposed. Its scale reflects the enormous electricity demand generated by advanced AI computing. The first phase could deliver about 800 megawatts by 2028. Reaching the full 10-gigawatt target would require years of additional construction and power infrastructure. Engineers would need to solve several problems beyond installing servers. The campus would require high-capacity electrical systems, advanced cooling, and dense computing infrastructure. At full scale, the facility could support hundreds of thousands of advanced AI processors. Those systems could train and run large language models and other generative AI applications. The reduction highlights the financial challenges behind the AI infrastructure boom. Companies now plan data centers that require enormous capital commitments before they generate returns. OpenAI's Ohio project could cost more than $500 billion if completed at its proposed scale. That figure makes the financing structure almost as important as the physical engineering. For Nvidia, the change also reflects the complexity of its relationship with the AI industry. The company supplies processors powering the AI boom while exploring financing arrangements around the infrastructure that houses them. Cutting the proposed guarantee could limit Nvidia's financial exposure without removing its role in the project. The terms remain subject to negotiations, and no final agreement has been announced. The Ohio campus still represents a major test for US AI infrastructure. Power availability, financing, and construction capacity will determine how far the project ultimately goes.

Nvidia scales back funding guarantee for Ohio OpenAI data centre: WSJ

According to the report Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, the report said. The change ⁠were made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments. Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar ⁠with ⁠the matter. The Journal said Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, according to the report. The change ⁠were made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments, the newspaper ⁠said. This came after Nvidia on Monday partnered with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure. OpenAI is still discussing a binding lease for the full 10-gigawatt project in Ohio, WSJ said. The site is being developed by SB Energy, a subsidiary of SoftBank, and would be the largest data center project announced to date ⁠if completed. Nvidia did not immediately respond to a request for comment outside regular business hours. OpenAI declined to comment. The project would help OpenAI move toward owning AI infrastructure, although its ability to fund large-scale commitments remains under scrutiny because the company is unprofitable despite a valuation of $852 billion.

Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports - The Korea Times

Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar with the matter. * The Journal said Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, according to the report. * The change was made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments, the newspaper said. * This came after Nvidia on Monday partnered with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure. * OpenAI is still discussing a binding lease for the full 10-gigawatt project in Ohio, WSJ said. The site is being developed by SB Energy, a subsidiary of SoftBank, and would be the largest data center project announced to date if completed. * Nvidia did not immediately respond to a request for comment outside regular business hours. OpenAI declined to comment.

Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports

Aug 14 (Reuters) - Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar with the matter. o The Journal said Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, according to the report. o The change was made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments, the newspaper said. o This came after Nvidia on Monday partnered with six major financial institutions to launch compute financing platforms aimed ?at raising over $500 billion in third-party capital for AI infrastructure. o OpenAI is still discussing a binding lease for the full 10-gigawatt project in Ohio, WSJ said. The site is being developed by SB Energy, a subsidiary of SoftBank, and would be the largest data center project announced to date if completed. o Nvidia did not immediately respond to a request for comment outside regular business hours. OpenAI declined to comment. o The project would help OpenAI move toward owning AI infrastructure, although its ability to fund large-scale commitments remains under scrutiny because the company is unprofitable despite a valuation of $852 billion. (Reporting by Mrinmay Dey in Mexico City; Editing by Tom Hogue)