Nvidia scales back funding guarantee for Ohio OpenAI data centre: WSJ
According to the report Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, the report said. The change were made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments.
Nvidia has lowered its guarantee for a planned OpenAI data center in Ohio, reportedly to less than $120 billion, according to the Wall Street Journal. This is a significant reduction from the original $250 billion figure discussed earlier, as noted by sources familiar with the situation. The revised amount reflects Nvidia's concern over potential risk exposure associated with large financing commitments, following feedback from investors.
The chipmaker is now expected to provide financial backing primarily for the initial phase of the project, with a potential deal possibly finalized by this weekend. The modification comes after Nvidia collaborated with six major financial institutions to establish financing platforms, aiming to raise more than $500 billion in third-party capital for AI infrastructure.
Despite these changes, OpenAI is still negotiating a binding lease for the complete 10-gigawatt data center project, which is being developed by SB Energy, a subsidiary of SoftBank, and could be the largest data center project ever announced if completed. OpenAI continues to explore options to own AI infrastructure, although its capacity to commit to large-scale funding is under scrutiny due to the company's ongoing unprofitability, even with a market valuation of $852 billion.
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