Nvidia, the American chip giant, is reportedly in talks to provide approximately $250 billion in guarantees for OpenAI, as part of the financing for a massive data center project planned for Southern Ohio. This project, which is being developed by Softbank's energy company, is expected to have a capacity of 10 gigawatts and a total cost that could exceed $500 billion, including the cost of AI chips.
Sources indicate that Nvidia's guarantees would cover the leasing and loan financing for the data center. Additionally, Nvidia is separately negotiating to finance AI chips for the project, potentially contributing up to $350 billion for these components. The first phase of this ambitious undertaking is anticipated to be operational by 2028, with an initial capacity of around 800 megawatts.
With a current market capitalization of approximately $5 trillion, Nvidia is actively working to secure future demand for its AI chips. The company has previously cautioned in its annual report that such substantial financing arrangements could potentially strain its cash flow and increase its credit risk. OpenAI is reportedly the primary candidate to lease the facility once completed.
