Nvidia in talks with OpenAI to guarantee $250 billion financing for data center, WSJ reports
The proposed guarantee would help OpenAI finance a 10-gigawatt campus and chip purchases as talks continue, the Wall Street Journal reported.
- Nvidia is in talks to provide a $250 billion financial guarantee for OpenAI, according to The Wall Street Journal.
- The backing would support OpenAI in leasing a massive 10-gigawatt data center campus being developed by SoftBank’s energy subsidiary in southern Ohio, with total costs potentially exceeding $500 billion.
- The $250 billion guarantee covers lease obligations and debt financing, while Nvidia is separately discussing an additional $350 billion financing deal to cover the processors needed inside the facility.
- The project aims to give OpenAI control over its own infrastructure, reducing reliance on third-party cloud providers while securing long-term processor demand for Nvidia.
- Power for the complex relies on a U.S.-Japan energy agreement, coordinated by U.S. Commerce Secretary Howard Lutnick, with the first 800-megawatt phase targeted for completion in 2028.
105 Articles
105 Articles
Nvidia's share fell almost 5% on Monday and closed at $196,51, after it became known that the company negotiates to support up to $250 billion in funding for an OpenAI data center.The deal revived fears about "circular financing" in the artificial intelligence industry.The back-up, reported by The Wall Street Journal and Bloomberg and confirmed by CNBC, would cover the lease debt and construction of a 10 gigawatt data center campus in Ohio, not …
View: AI labs flock to the Bank of Jensen
Liz’s viewOpenAI and Anthropic need to borrow a lot of money but they don’t have profits or a track record of creditworthiness. Enter Jensen Huang.Nvidia’s $250 billion backstop to OpenAI will let the money-burning AI lab lease space at the largest data center ever built. OpenAI doesn’t have an investment-grade rating, so Nvidia is essentially lending its own. Broadcom did the same thing for Anthropic a few weeks ago; I wrote at the time that it…
Nvidia behind $50 billion lease on Texas data center, FT reports
In an impressive move, Nvidia is reportedly set to lease Hut 8's data center in Texas, with the value of the arrangement potentially soaring to fifty billion dollars in the future. This state-of-the-art campus is designed to facilitate extensive artificial intelligence training and operations. Moreover, Nvidia is expected to sublease parts of the facility to its cloud computing allies, significantly advancing their AI infrastructure through the …
Nvidia in talks to back $500B OpenAI data center — days after CEO Jensen Huang voiced support for controversial open-source AI used by China
Nvidia is reportedly in talks to provide a $250 billion financing package for a giant OpenAI data center project in Ohio – days after CEO Jensen Huang voiced support for controversial "open source" AI models used increasingly by China.
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