- Nvidia is in talks to provide a roughly $250 billion financial guarantee for OpenAI as part of a massive data center project in Ohio, in a deal that would rank among the largest financing arrangements in the artificial intelligence industry.
- The guarantee would help OpenAI lease a planned 10-gigawatt data center campus being developed in southern Ohio by SoftBank's energy subsidiary.
- The discussions remain ongoing, and the terms have not been finalized, meaning the deal could still fall apart.
- The project could ultimately cost more than $500 billion, including Nvidia chips to equip the facilities.
- Nvidia's backing would allow the developer to secure debt on more favorable terms by reducing lenders' concerns over OpenAI's lack of an investment-grade credit rating.
- The proposed guarantee would cover the lease and construction financing, but not the purchase of Nvidia chips.
- The first phase of the project, expected to deliver about 800 megawatts of power, is targeted for completion in 2028.
Nvidia is negotiating a substantial $250 billion financial guarantee to assist OpenAI in leasing a massive data center project in southern Ohio. This deal, reported by *The Wall Street Journal*, could rank among the largest financing arrangements in the artificial intelligence industry.124
The 10-gigawatt facility is being developed by SoftBank's energy subsidiary, with the total project costs potentially exceeding $500 billion. The financing from Nvidia would enable OpenAI to secure debt on more favorable terms, addressing concerns over its lack of an investment-grade credit rating.
The proposed guarantee would cover lease and construction financing, but not the purchase of Nvidia chips, which could total about $350 billion. The first phase of the project is expected to deliver approximately 800 megawatts of power and is targeted for completion by 2028.67
Discussions are ongoing, and while the terms have not been finalized, the deal remains subject to change, with the possibility of it falling apart. The U.S. government controls the power for the project, funded separately by Japan under a recent trade deal, with U.S. Commerce Secretary Howard Lutnick involved in determining access.3
“The proposed financing would help OpenAI secure a lease for a 10-gigawatt data center, with the project potentially costing over $500 billion. Additionally, Nvidia is discussing a separate arrangement for OpenAI's chip purchases, which could total about $350 billion.”
