How much would Nvidia guarantee, and what would it cover?

Nvidia would provide roughly $250 billion to guarantee financing tied to the data center lease and construction debt. Separately, Nvidia and OpenAI are discussing financing for Nvidia chip purchases that could total another $350 billion.

Where is the data center being built and when?

The 10-gigawatt AI campus is being developed in southern Ohio by SoftBank Group's energy subsidiary and is expected to deliver about 800 megawatts in its first phase by 2028. The total project cost could exceed $500 billion.

Why does OpenAI need Nvidia's guarantee?

The guarantee would help OpenAI secure favorable financing despite the ChatGPT maker lacking an investment-grade credit rating.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AIJul 27, 2026Jul 27, 2026, 13:00 JST

Nvidia Weighs $250B Guarantee for OpenAI Data Center Financing

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3 Key Points

What happened
Nvidia is in talks to provide a roughly $250 billion financial backstop for OpenAI's 10-gigawatt AI campus in southern Ohio, according to a Wall Street Journal report. The guarantee would help OpenAI secure favorable financing for the project despite lacking an investment-grade credit rating. Nvidia would also separately discuss financing for Nvidia chip purchases that could total another $350 billion.
Why it matters
The arrangement links Nvidia's financial credibility directly to OpenAI's ability to build and pay for AI infrastructure—and to keep buying Nvidia's chips at scale. Investors including 'Big Short' investor Michael Burry have flagged the structure as circular and risky: Nvidia guarantees billions in debt so OpenAI can buy more Nvidia hardware. Burry added to his Nvidia short position on Friday at $210.28.
What to watch
The data center project, developed by SoftBank Group's energy subsidiary, is expected to deliver about 800 megawatts in its first phase by 2028 and could ultimately cost more than $500 billion. Microsoft, Google, and Anthropic have also expressed interest in the site. Neither Nvidia nor OpenAI has commented on the financing arrangement.

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Context & Analysis

The proposed financing arrangement sits at the intersection of AI infrastructure scale-up and financial engineering. OpenAI, lacking investment-grade credit, would struggle to borrow $250 billion on its own terms for the Ohio data center project; Nvidia's guarantee essentially substitutes its own creditworthiness for OpenAI's. The structure creates a tightly coupled loop: Nvidia backs OpenAI's debt, enabling OpenAI to build infrastructure and purchase Nvidia's chips at enormous scale (potentially another $350 billion in chip financing).

Investor concern, voiced by Burry and tech commentator Ed Zitron, centers on the circularity and risk concentration. Burry noted the arrangement as "Around and around we go," highlighting the feedback loop in which Nvidia guarantees spending on its own chips. Zitron questioned both the structure's sustainability and SoftBank's role as developer, asking where the underlying capital would ultimately come from. The deal effectively ties Nvidia's balance sheet to OpenAI's ability to execute, build, and deploy—a concentration of risk that may concern Nvidia shareholders even as it unlocks a multi-hundred-billion-dollar infrastructure deal.

FAQ

How much would Nvidia guarantee, and what would it cover?: Nvidia would provide roughly $250 billion to guarantee financing tied to the data center lease and construction debt. Separately, Nvidia and OpenAI are discussing financing for Nvidia chip purchases that could total another $350 billion.
Where is the data center being built and when?: The 10-gigawatt AI campus is being developed in southern Ohio by SoftBank Group's energy subsidiary and is expected to deliver about 800 megawatts in its first phase by 2028. The total project cost could exceed $500 billion.
Why does OpenAI need Nvidia's guarantee?: The guarantee would help OpenAI secure favorable financing despite the ChatGPT maker lacking an investment-grade credit rating.

Yahoo Finance AIRead Original Article

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