Overview
Nvidia is in active discussions to provide roughly $250 billion as a financial guarantee to support OpenAI in leasing and financing construction of a planned 10-gigawatt data center campus in southern Ohio being developed by SoftBank's energy subsidiary. The proposed backing would be directed at reducing lenders' concerns tied to OpenAI's credit profile and enabling more favorable borrowing terms for the developer.
Scale and scope
Officials involved in the talks indicate the full development could ultimately cost in excess of $500 billion once equipment — including Nvidia chips to populate the facilities — is taken into account. The guarantee under consideration would explicitly cover lease obligations and the construction financing for the campus, and would not extend to the direct purchase of chips.
Separate chip financing
In addition to the lease and construction guarantee, Nvidia is reported to be in conversations about a distinct financing arrangement to support OpenAI's acquisition of chips, a component that could amount to roughly $350 billion. That arrangement would be separate from the guarantee aimed at securing the site-level financing.
Project timing and power
The initial phase of the Ohio campus is intended to deliver about 800 megawatts of power and is targeted for completion in 2028. The development is being planned as a large-scale data center campus capable of supporting significant artificial intelligence workloads.
Ongoing negotiations and uncertainty
Discussions between the parties are continuing and the precise terms have not been finalized. Because the arrangements remain under negotiation, there is a possibility the agreements could fail to materialize.
Implications for financing and markets
A guarantee of this magnitude would be among the largest financing commitments associated with artificial intelligence infrastructure. By offering such backing, Nvidia would aim to alleviate lender concerns stemming from OpenAI's lack of an investment-grade credit rating, enabling the developer to access debt under more favorable conditions than might otherwise be available.
Note: The status of the conversations is fluid and the terms under discussion may change.