Nvidia to provide up to $105 billion guarantee for OpenAI's Ohio data centre

Nvidia has pledged a guarantee of up to $105 billion to assist OpenAI in leasing a massive data center in Ohio, developed by SoftBank-owned SB Energy, marking one of Nvidia's largest infrastructure financing commitments. The company also plans to invest $1.5 billion in SB Energy, following a $1 billion investment from OpenAI and SoftBank earlier.

This new deal exemplifies Nvidia's practice of financing infrastructure built around its chips, a strategy that boosts demand but has drawn criticism for potential circular funding. Nvidia's CEO Jensen Huang clarified that this deal is not circular financing and that Nvidia is leveraging its scale and long-term vision to aid OpenAI.

The data center in Pike County, Ohio, will have a capacity of up to 8 gigawatts, with the first 800 megawatts projected to be operational by 2028. OpenAI is leasing the site for 20 years. Nvidia will be the exclusive chip provider for the facility, which will retain a minimum value, ensuring the site's sustained value. OpenAI will pay the rent, but if it defaults, Nvidia will cover the difference between the minimum value and the site's eventual recoupable value.

Nvidia anticipates that this site could contribute up to $200 billion to Nvidia's revenue, with the potential to generate $600 billion in revenue from OpenAI by 2030, including a future expansion of the Ohio site by 3.75 gigawatts. The project is expected to create approximately 35,000 construction jobs through 2032 and about 2,500 long-term operating jobs.