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

Nvidia has pledged a guarantee worth up to $105 billion to assist OpenAI in leasing a substantial data center located in Ohio, developed by SoftBank's SB Energy. This marks Nvidia's largest infrastructure financing commitment to date, with the company also investing $1.5 billion into SB Energy. The agreement comes amid growing concerns about potential circular financing between Nvidia and its customers.

Nvidia's CEO, Jensen Huang, emphasized that the new deal does not constitute circular financing, as the chipmaker leverages its scale and long-term foresight to aid OpenAI in deploying advanced AI facilities that can be continuously upgraded. The company will be the exclusive chip provider for the facility in Pike County, Ohio, which is projected to generate up to 8 gigawatts of power capacity, with the first 800 megawatts expected to be operational by 2028.

OpenAI will lease the site for 20 years, and the financing structure will encompass equity, debt, and potential project finance loans. The guarantee covers a portion of lease and power payments, ensuring the site retains a minimum value. Nvidia anticipates that the Ohio site could contribute up to $200 billion to its revenue, potentially making $600 billion by 2030 through selling 16 gigawatts of computing power.