Nvidia and OpenAI Discuss $250 Billion Backstop for Ohio Data Center
OpenAI is reportedly in talks with Nvidia to secure up to $250 billion as a financial backstop, which would support the development of its new AI data center campus in Pike County, Ohio. The facility, expected to consume 10 gigawatts—enough for about 8 million U.S. households annually—is projected to cost over $500 billion total. This credit guarantee from Nvidia could allow OpenAI to raise debt financing based on the chipmaker's strong financial standing. The discussions are ongoing and subject to change, with details remaining confidential at this stage. The Ohio site was previously a uranium-enrichment plant before being repurposed for AI infrastructure. Separately, in September 2024, Nvidia had announced plans to invest up to $100 billion in OpenAI as part of a strategic partnership involving the deployment of 10 gigawatts of its systems, though that investment has not yet materialized. OpenAI is currently valued at nearly $1 trillion and is preparing for an IPO. The company faces growing competition from firms like Anthropic, Google, Amazon, and Meta, all investing heavily in AI infrastructure.
Tickers: $NVDA
Topics: AI Data Centers Financing Partnership