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 adjusted its backing for an OpenAI data center project in Ohio, the Wall Street Journal disclosed on Friday, citing insiders. The company now anticipates committing less than $120 billion initially, a significant drop from the earlier $250 billion pledge. The Journal suggests Nvidia and OpenAI are close to finalizing an agreement, potentially signed this weekend.
This reduction in funding follows investor apprehensions over Nvidia's risk exposure due to substantial financial commitments. The change came after Nvidia collaborated with six prominent financial entities on Monday to introduce a compute financing system aimed at raising over $500 billion in third-party funds for AI infrastructure.
OpenAI is still deliberating a binding lease for the complete 10-gigawatt project in Ohio, which is being constructed by SB Energy, a subsidiary of SoftBank, and would be the largest data center project announced if completed.
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