Nvidia Reportedly Discussing $250 Billion Financing Backstop for OpenAI Data Center

Nvidia is reportedly in talks to provide approximately $250 billion in financing guarantees for OpenAI as part of a massive data center project in Ohio, according to a report by The Wall Street Journal, with additional reporting by Reuters.

Nvidia is reportedly discussing financing support for OpenAI's planned multibillion-dollar AI data center. [Photo: NVIDIA]

The financing would support a planned 10-gigawatt data center being developed by SoftBank's energy subsidiary in southern Ohio.

According to the report, the guarantee would help OpenAI secure long-term lease and debt financing for the project. The overall development is expected to cost more than $500 billion, including the Nvidia chips that will power the facility.

For OpenAI, the project would represent a significant step toward owning more of its computing infrastructure instead of relying primarily on cloud providers such as Microsoft, Amazon, and Oracle.

For Nvidia, the agreement would help secure long-term demand for its AI chips.

The report added that Nvidia is also discussing financing OpenAI's purchases of AI chips worth as much as $350 billion.

The proposed financing guarantee would cover the project's lease obligations and debt financing, but not the cost of Nvidia's chips.