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 has reduced its funding guarantee for an OpenAI data center project in Ohio to less than $120 billion, down from the previously discussed $250 billion, according to the Wall Street Journal. The chipmaker and OpenAI are reportedly nearing an agreement, with Nvidia expected to provide financial backing for the first phase of the project.
The change was made following investor concerns about Nvidia's risk exposure to large financing commitments. Despite the reduced guarantee, Nvidia has partnered with six major financial institutions to launch compute financing platforms, aiming to raise over $500 billion in third-party capital for AI infrastructure. OpenAI is still in discussions for a binding lease for the full 10-gigawatt project, which is being developed by SB Energy, a subsidiary of SoftBank, and would be the largest data center project announced to date.
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