Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports

Nvidia is revising the scale of its funding guarantee for an OpenAI data center campus located in Ohio. According to reporting from the Wall Street Journal, as cited by Reuters and Yahoo Finance, Nvidia has scaled back this funding guarantee. While some reports from Interesting Engineering suggest that the backing for the 10GW Ohio campus was cut by more than $130 billion due to risk concerns, other reports indicate different figures. The New York Times reported on August 17 that Nvidia would back the Ohio data center with as much as $105 billion. Previously, The Information reported that Nvidia was nearing a deal to guarantee roughly $100 billion in credit for OpenAI.

Coverage of the financial arrangements has been extensive across several major outlets. Seeking Alpha reports that the guarantee was scaled back to less than $120 billion, while The Next Web notes that the backstop was halved following the reveal of stakes in 13F filings. In addition to the credit guarantees, multiple outlets including CNBC, Reuters, and The Information are reporting that Nvidia is weighing a $3 billion investment in SB Energy, a SoftBank entity. This specific investment is reportedly tied to the broader OpenAI data center deal, indicating a strategic link between the energy infrastructure and the computing facility. The context of these negotiations involves a massive infrastructure push for AI capabilities.

The Ohio campus is described as a 10GW project, highlighting the immense power requirements of OpenAI's operations. The involvement of SB Energy suggests that securing power is a primary component of the deal. The shifting numbers reported by the media, ranging from $100 billion to $120 billion, reflect a volatile negotiation process regarding how much risk Nvidia is willing to assume to ensure the data center's completion and operational viability. Looking forward, stakeholders are monitoring the finalization of the credit guarantee and the status of the $3 billion investment in SB Energy. Observers will be watching to see if Nvidia's credit backstop stabilizes at the $105 billion figure mentioned by The New York Times or if further adjustments occur as risk assessments continue.