Nvidia Cuts Planned Funding Guarantee for OpenAI’s Ohio Data Center

Nvidia has reportedly scaled back its planned financial support for a major OpenAI data center project in Ohio, according to the Wall Street Journal.

The chipmaker is now expected to initially guarantee less than $120 billion for the project, significantly below the $250 billion commitment that had previously been discussed, the report said, citing people familiar with the negotiations.

Nvidia and OpenAI are reportedly close to reaching an agreement, with Nvidia expected to provide financial backing only for the first phase of the development.

The deal could be finalized as early as this weekend.
The decision to reduce the guarantee reportedly followed concerns from investors about Nvidia’s exposure to large financing commitments linked to artificial intelligence infrastructure.

The development comes days after Nvidia announced a partnership with six major financial institutions to create financing platforms designed to attract more than $500 billion in third-party capital for AI infrastructure projects.

OpenAI is also continuing discussions over a binding lease covering the full 10-gigawatt Ohio facility.

The project is being developed by SB Energy, a subsidiary of SoftBank, and would become the largest data center project ever announced if completed at its planned scale.

The Ohio project is part of OpenAI’s broader effort to secure and eventually control more of the computing infrastructure required to support its artificial intelligence operations.

However, the company’s ability to finance such large-scale projects remains under scrutiny because it continues to operate at a loss despite its reported valuation of about $852 billion.

Nvidia and OpenAI had not immediately provided further comments on the reported changes in the financing arrangement

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