Nvidia is currently in discussions to provide a financial guarantee for OpenAI, valued at approximately $250 billion, as part of a large-scale data center project in Ohio. This deal could become one of the largest financial transactions in the artificial intelligence industry, according to a Monday report from the Wall Street Journal.
This guarantee would enable OpenAI to lease a planned 10-gigawatt data center campus, which is being developed in southern Ohio by SoftBank’s energy subsidiary, the WSJ reported, citing sources familiar with the matter.
The report indicates that the project could ultimately exceed $500 billion in cost, including Nvidia chips needed to equip the facilities.
According to the WSJ, Nvidia’s backing would allow the developer to secure debt financing under more favorable terms, alleviating lender concerns about OpenAI’s lack of an investment-grade credit rating.
The proposed guarantee would cover financing for leasing and construction, but not the purchase of Nvidia chips, the report adds.
The newspaper also reported that Nvidia is separately negotiating a financial agreement related to OpenAI’s chip purchases, which could amount to approximately $350 billion.
The first phase of the project, expected to provide around 800 megawatts of capacity, is slated for completion by 2028, according to the WSJ.
Negotiations are still ongoing, and the terms have not been finalized, meaning the deal could still fall through, the report states.
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