Nvidia Scales Back OpenAI Ohio Data Center Backing to Under $120 Billion Amid Investor Risk Concerns
Nvidia has scaled back its plans to financially back a massive proposed data center project for OpenAI in Ohio. The semiconductor giant is now expected to initially guarantee funding of less than $120 billion, down from the previously discussed $250 billion, according to a report by The Wall Street Journal.
Both companies are nearing an agreement under which Nvidia will provide financial guarantees solely for the first phase of the mega-project. Sources familiar with the matter indicated that the deal could be signed as early as this weekend.
Investor Concerns Prompt Risk Reduction
The decision to trim the initial financial commitment follows concerns raised by investors regarding the magnitude of risk exposure Nvidia could face from such extensive capital guarantees.
This move comes shortly after Nvidia announced partnerships with six major financial institutions on Monday to launch specialized compute financing platforms. That broader initiative aims to raise more than $500 billion in third-party capital to finance global artificial intelligence infrastructure without overburdening Nvidia's balance sheet.
Project Overview and Scale
OpenAI remains in ongoing negotiations regarding a binding lease agreement for the entire facility, which boasts a planned capacity of 10 gigawatts (GW).
The site is being developed by SB Energy, a clean energy subsidiary of Japan's SoftBank Group. Once completed, the Ohio development is slated to become the largest announced data center project in the world.
The following table summarizes the key details of the proposed project and revised deal terms:
Project AttributeDetails & Revisions
Key PartnersNvidia (Financial Guarantor/Hardware), OpenAI (Tenant/Operator)
Site DeveloperSB Energy (SoftBank Group subsidiary)
LocationOhio, United States
Total Planned Power Capacity10 Gigawatts (GW)
Initial Funding GuaranteeUnder $120 Billion (Revised down from $250 Billion)
Scope of GuaranteePhase 1 of the development only
Broader Financing Target>$500 Billion via third-party financial consortia