- Nvidia is in talks to provide a guarantee of about $250 billion to help lease computing from a giant data center project, according to the Wall Street Journal.
- The deal should help the AI lab lease a 10-gigawatt data center hub that is developing in Ohio, the Journal said.
- Nvidia's guarantee would help SoftBank borrow more capital to bankroll its construction.
- The project is expected to cost more than $500 billion in total, including the chips inside the data center, according to the WSJ.
- The $250 billion guarantee covers the data center lease and debt financing, but would not cover the Nvidia chips inside the center.
- The first phase of the project is expected to be finished in 2028, with around 800 megawatts of power, the Journal said.
- For OpenAI, a deal would be the first step toward controlling its own infrastructure instead of renting it from Microsoft, Amazon, and Oracle.
- The power for the project is controlled by the U.S. government and funded separately by Japan under a recent trade deal.
- U.S. Commerce Secretary Howard Lutnick is involved in deciding who gets access, according to the report.
- OpenAI is among the companies showing the strongest interest in the project, while Anthropic, Microsoft, and Google have also spoken to Lutnick in recent weeks.
- The deal underscores a broader shift as tech giants tap debt and equity markets to fund AI infrastructure, with spending set to top $700 billion this year.
Nvidia is in discussions to guarantee $250 billion for OpenAI, facilitating the leasing of a 10-gigawatt data center in Ohio, as reported by the Wall Street Journal. This project, spearheaded by SoftBank, is projected to cost over $500 billion in total.134
The financing would allow OpenAI to control its own infrastructure, moving away from reliance on Microsoft, Amazon, and Oracle. For Nvidia, this deal ensures a steady demand for its chips for years to come.
The $250 billion guarantee will cover the data center lease and debt financing, but not the chips, which could cost up to $350 billion. The first phase of the project is expected to be completed by 2028, generating around 800 megawatts of power, with funding tied to a recent trade deal involving Japan.56
U.S. Commerce Secretary Howard Lutnick is involved in determining access to the power, which is controlled by the U.S. government. OpenAI is among the companies most interested in this project, alongside Anthropic, Microsoft, and Google.810
This deal highlights a broader trend of tech giants leveraging debt and equity markets to fund AI infrastructure, with spending projected to exceed $700 billion this year.11
“The proposed data center hub in Ohio is a 10-gigawatt project developed by SoftBank's energy subsidiary, with total costs exceeding $500 billion. For OpenAI, the deal would mark its first step toward owning its own infrastructure rather than renting from Microsoft, Amazon, and Oracle.”
