Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports
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…
Nvidia is reducing the financial guarantee it will extend to a proposed OpenAI data center in Ohio, according to a report by the Wall Street Journal. The chipmaker's commitment is now expected to be under $120 billion, a significant drop from the $250 billion previously discussed, the news outlet revealed on Friday. Sources familiar with the matter told the Journal that Nvidia and OpenAI are close to finalizing an agreement.
The financial backstop from Nvidia will only cover the initial phase of the project. The deal could be officially signed as early as this weekend, the report added.
The decision to scale back the funding guarantee was prompted by investors expressing concerns over Nvidia's risk exposure due to substantial financing commitments, the Journal noted. This development comes after Nvidia joined forces with six major financial institutions on Monday to launch compute financing platforms that aim to raise over $500 billion in third-party capital for AI infrastructure.
OpenAI is still in discussions to secure a binding lease for the entire 10-gigawatt project in Ohio, as reported by the Wall Street Journal. The site is being developed by SB Energy, a subsidiary of SoftBank, and would mark the largest data center project announced to date upon completion.
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