- Nvidia is in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project, one of the most ambitious financial transactions yet in America’s artificial-intelligence boom.
- The proposed campus could cost more than $500 billion, including the chips that would go inside the data centers.
- The planned campus would require around 10 gigawatts of electricity—enough to power several million homes—and is expected to be built over multiple years.
- The first phase, providing about 800 megawatts of capacity, is expected to be completed by 2028.
- The project is being developed on a decommissioned uranium-enrichment site about 50 miles south of Columbus, Ohio.
- Commerce Secretary Howard Lutnick is involved in deciding who will get the power, and the government hopes using federal land will help avoid permitting delays.
- The electricity for the project would come from a natural gas power facility backed by a $33-billion Japanese investment under a recent US-Japan trade agreement.
- As a privately held company that is still unprofitable, OpenAI does not have an investment-grade credit rating, making large-scale borrowing more difficult.
Nvidia is negotiating a $250 billion financial backstop for OpenAI as part of a groundbreaking AI data center project in Ohio, which could exceed $500 billion in total costs. The project, developed by SoftBank's energy unit, aims to provide 10 gigawatts of power, enough to supply several million homes.123
The first phase of the project, which will provide about 800 megawatts of capacity, is expected to be completed by 2028. The electricity will be sourced from a natural gas facility backed by a $33 billion Japanese investment under a recent US-Japan trade agreement.4
As a privately held and currently unprofitable company, OpenAI lacks an investment-grade credit rating, making large-scale borrowing challenging. Nvidia's backing would enhance OpenAI's credit profile, allowing it to secure debt at more favorable terms.9
Commerce Secretary Howard Lutnick is involved in determining access to the power supply, which is controlled by the U.S. government. Other tech companies, including Microsoft, Google, and Anthropic, have also expressed interest in the Ohio site, indicating a competitive landscape for AI infrastructure investments.
If completed, the Ohio campus would reduce OpenAI's reliance on cloud providers such as Microsoft, Amazon, and Oracle.
“The proposed data center, developed by SoftBank, will require around 10 gigawatts of electricity, enough to power several million homes. The first phase is expected to be completed by 2028, with the project being built on a decommissioned uranium-enrichment site near Columbus, Ohio.”
WSJ
