Nvidia cuts planned OpenAI data center guarantee to below $120 billion - WSJ

Nvidia has lowered its initial financial commitment for OpenAI's proposed 10-gigawatt data center in Ohio to under $120 billion, according to the Wall Street Journal. This is a significant reduction from the earlier $250 billion figure discussed. The chipmaker and OpenAI are close to finalizing an agreement that would see Nvidia provide a financial guarantee only for the project's initial phase.

This adjustment comes after investors raised concerns about Nvidia's exposure to risks associated with large financing commitments. The proposed data center, being developed by SoftBank's SB Energy, would be the largest project of its kind if completed. OpenAI is still in discussions to secure a binding lease for the entire site, indicating that the broader plans for the project are not being abandoned.

Despite the smaller initial guarantee, OpenAI remains in talks to acquire greater control over the infrastructure used for training and operating its AI models. Nvidia's revised commitment follows the company's announcement of partnerships with six large financial institutions to establish compute-financing platforms, with the aim of raising over $500 billion in third-party capital for AI infrastructure.