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 reduced its funding guarantee for the proposed OpenAI data center project in Ohio, now expecting to provide less than $120 billion initially, according to the Wall Street Journal. This is a significant decrease from the previously discussed $250 billion commitment. The chipmaker is expected to provide financial backing only for the first phase of the project, with a deal potentially being signed this weekend.
The reduction in funding comes after investors expressed concerns about Nvidia's risk exposure due to large financing commitments. The project, being developed by SB Energy, a subsidiary of SoftBank, would be the largest data center announced if completed. OpenAI is still discussing a binding lease for the full 10-gigawatt project, which would advance the company's goal of owning AI infrastructure, despite the company's ongoing profitability challenges.
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