Nvidia has reportedly cut its proposed financial guarantee for OpenAI’s massive Ohio data center project to less than $120 billion.
The chipmaker had considered a guarantee of about $250 billion in late July. Investor concerns over the financial risks tied to the project have now prompted Nvidia to reconsider the scale of its backing.
The change could reshape one of the most ambitious AI infrastructure projects in the US. OpenAI plans to build a 10-gigawatt data center campus in Pike County, Ohio.
Nvidia rethinks financial exposure
Nvidia’s proposed support would not amount to a direct $250 billion investment. Instead, the company would reportedly guarantee financing arranged by lenders for the planned campus.
That structure could help OpenAI secure large amounts of debt. It could also give lenders greater confidence in financing a project tied to a company without an investment-grade credit rating.
The original proposal raised questions about how much financial risk Nvidia should assume. Investors have increasingly scrutinized the chipmaker’s expanding financial ties with major AI customers.
Nvidia is also discussing a separate arrangement involving as much as $350 billion in AI chips for the facility. That proposal would remain separate from the data center guarantee.
The distinction matters because the two commitments would carry different financial structures. Nvidia would supply computing hardware through the chip arrangement instead of directly funding construction.
Ohio campus targets 10 GW
SB Energy, SoftBank’s energy subsidiary, is developing the Ohio campus for OpenAI. The site could eventually consume 10 gigawatts of power at full scale.
That figure would make the project one of the largest data center developments ever proposed. Its scale reflects the enormous electricity demand generated by advanced AI computing.
The first phase could deliver about 800 megawatts by 2028. Reaching the full 10-gigawatt target would require years of additional construction and power infrastructure.
Engineers would need to solve several problems beyond installing servers. The campus would require high-capacity electrical systems, advanced cooling, and dense computing infrastructure.
At full scale, the facility could support hundreds of thousands of advanced AI processors. Those systems could train and run large language models and other generative AI applications.
Financial test
The reduction highlights the financial challenges behind the AI infrastructure boom. Companies now plan data centers that require enormous capital commitments before they generate returns.
OpenAI’s Ohio project could cost more than $500 billion if completed at its proposed scale. That figure makes the financing structure almost as important as the physical engineering.
For Nvidia, the change also reflects the complexity of its relationship with the AI industry. The company supplies processors powering the AI boom while exploring financing arrangements around the infrastructure that houses them.
Cutting the proposed guarantee could limit Nvidia’s financial exposure without removing its role in the project. The terms remain subject to negotiations, and no final agreement has been announced.
The Ohio campus still represents a major test for US AI infrastructure. Power availability, financing, and construction capacity will determine how far the project ultimately goes.