Nvidia has cut its funding guarantee for a major OpenAI data center in Ohio to less than $120 billion from $250 billion after investor pushback about risk exposure.
The company will now back only the first phase of the project, with a deal expected as soon as this weekend.
OpenAI is still pursuing a lease for the full 10-gigawatt facility being developed by SoftBank's SB Energy, which would be the largest data center project announced if completed.
What happened
Nvidia has reduced its planned financial backstop for an OpenAI data center project in Ohio to less than $120 billion, down from $250 billion previously discussed, according to the Wall Street Journal. The chipmaker will now guarantee funding only for the first phase of the project, with a deal potentially signed as early as this weekend.
Why it matters
Nvidia made this revision after investors raised concerns about the company's risk exposure from large financing commitments. The move reflects tension between AI infrastructure growth and prudent capital allocation—Nvidia is simultaneously launching compute financing platforms with six major financial institutions aimed at raising over $500 billion in third-party capital for AI infrastructure.
What to watch
The Ohio site, being developed by SB Energy (a SoftBank subsidiary), is designed as a 10-gigawatt data center and would be the largest announced to date if completed. OpenAI, valued at $852 billion but unprofitable, is still negotiating a binding lease for the full project and seeking to own more of its own AI infrastructure.
Nvidia has reduced its planned financial backstop for a major data center project in Ohio designed to support OpenAI's AI infrastructure ambitions. According to the Wall Street Journal, the chipmaker initially pledged $250 billion but has now scaled back to less than $120 billion, with the guarantee now covering only the first phase of development. The change follows investor concerns about Nvidia's risk exposure from large-scale financing commitments, though the company and OpenAI are nearing an agreement and a deal could be signed as early as the weekend.
The Ohio project itself is being developed by SB Energy, a subsidiary of SoftBank, and is designed as a 10-gigawatt facility. If completed, it would be the largest data center project announced to date. OpenAI is still negotiating a binding lease for the full facility and sees it as a path toward owning more of its own AI infrastructure. However, OpenAI's financial position—the company is valued at $852 billion but remains unprofitable—has drawn scrutiny regarding its ability to fund such large-scale commitments independently.
Nividia's revised approach comes as the chipmaker is simultaneously taking on a broader infrastructure-financing role. On Monday, the company partnered with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure. This parallel move suggests Nvidia is shifting from being the sole financial backstop to orchestrating broader capital mobilization across the industry, effectively reducing its own risk while maintaining influence over infrastructure deployment.
Nvidia's decision to reduce its financial backstop from $250 billion to less than $120 billion reflects growing caution among major investors about the company's exposure to massive infrastructure commitments. The timing is notable: just days before this revision, Nvidia partnered with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure—a move that suggests the company is deliberately shifting its role from sole guarantor to orchestrator of broader financing solutions. The Ohio project itself remains ambitious; as a 10-gigawatt facility it would represent the largest data center ever announced if completed, and its development by SB Energy (SoftBank's subsidiary) signals the scale of capital mobilization required for next-generation AI compute. OpenAI's pursuit of the full project—despite being unprofitable with a $852 billion valuation—underscores the strategic priority AI infrastructure has become for the company, even as its own ability to fund such commitments independently remains questioned.
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