Nvidia Revises OpenAI Ohio Data Centre Financing Plans

Nvidia has revised its plans to support a proposed OpenAI data centre project in Ohio, with the chipmaker now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The change marks a significant reduction in Nvidia’s planned financial exposure to the project. It also follows concerns from investors about the risks associated with large financing commitments linked to AI infrastructure.

Nvidia and OpenAI Near Agreement

The Wall Street Journal reported that Nvidia and OpenAI are nearing an agreement. Under the proposed arrangement, Nvidia would provide a financial backstop for only the first phase of the Ohio project.

The two companies could sign a deal as early as this weekend, according to the report. However, OpenAI remains in discussions over a binding lease covering the full 10-gigawatt project.

The revised commitment would therefore limit Nvidia’s initial financial exposure while allowing the broader development to progress.

Investors Raise Financing Concerns

Nvidia’s decision follows concerns among investors about its exposure to major financing commitments. The company had previously discussed supporting up to $250 billion for the project.

Meanwhile, Nvidia on Monday partnered with six major financial institutions to launch compute financing platforms. The initiative aims to raise more than $500 billion in third-party capital for AI infrastructure.

The move highlights the growing scale of financing required to support the rapid expansion of artificial intelligence infrastructure.

Ohio Project Remains Under Discussion

OpenAI is still negotiating a binding lease for the entire 10-gigawatt project in Ohio, the Wall Street Journal reported.

SB Energy, a subsidiary of SoftBank, is developing the site. If completed, the project would become the largest data centre project announced to date.

For OpenAI, the development could support its move towards owning AI infrastructure rather than relying entirely on external providers. However, the company’s capacity to fund large-scale commitments remains under scrutiny.

OpenAI remains unprofitable despite having a valuation of $852 billion. As a result, its ability to finance major infrastructure projects continues to attract attention.

Companies Decline Immediate Comment

Nvidia did not immediately respond to a request for comment outside regular business hours. OpenAI declined to comment.

The reported reduction in Nvidia’s planned guarantee could therefore represent a more cautious approach to financing the Ohio project. At the same time, discussions over the wider 10-gigawatt development remain ongoing.

With inputs from Reuters