Nvidia scales back funding guarantee for Ohio OpenAI data center: Report
Nvidia has reportedly scaled back its initial funding guarantee for a proposed OpenAI data center project in Ohio, reducing it from $250 billion to less than $120 billion due to investor concerns. The 10-gigawatt project, developed by SB Energy (a SoftBank subsidiary), would be the largest announced to date if completed, with OpenAI still pursuing a binding lease for the full site.
Nvidia is reportedly scaling back its initial financial commitment to a proposed OpenAI data center project in Ohio. Citing people familiar with the matter, the Wall Street Journal reported that Nvidia is now expected to guarantee less than $120 billion, a reduction from the $250 billion previously discussed.
This revision comes after investors raised concerns about Nvidia's risk exposure tied to large financing commitments. The chipmaker is expected to provide a financial backstop only for the first phase of the project, with an agreement potentially being signed this weekend. OpenAI is still engaged in discussions for a binding lease for the full 10-gigawatt project, which is being developed by SB Energy, a subsidiary of SoftBank. If completed, this facility would be the largest data center project announced to date, allowing OpenAI to move towards owning its AI infrastructure, despite scrutiny regarding its ability to fund large-scale commitments given its unprofitable status.