Nvidia in Talks to Provide Financial Guarantee for OpenAI's Ohio Data Center Project
According to a Wall Street Journal report, Nvidia is in discussions to provide a $250 billion financial guarantee to support the development of a large-scale data center project by OpenAI in southern Ohio. The initiative involves SoftBank’s energy subsidiary and could cost over $500 billion when including the purchase of Nvidia AI chips for operations. This backing aims to help secure construction financing, addressing concerns about OpenAI's credit profile. Separately, Nvidia is also reportedly considering a separate $350 billion financing package specifically tied to OpenAI’s purchases of its AI hardware. The first phase of this data center project is expected to deliver 800 megawatts and begin operations in 2028. However, the terms are still under negotiation and no final agreement has been reached. Nvidia's stock was down slightly at $202 on Monday morning despite an overall gain of about 8% year-to-date.
Tickers: $NVDA