Nvidia is in talks to provide a $250 billion financing guarantee for a 10GW data center project that OpenAI is considering leasing in Ohio. The proposed agreement would expand Nvidia’s role from supplying equipment to also offering financial support for the infrastructure development.
SB Energy, a SoftBank subsidiary, is set to build the facility at the Portsmouth Site in Pike County, with OpenAI negotiating to become the primary tenant. The financing guarantee would serve as a financial backstop rather than a direct investment, supporting OpenAI’s lease obligations and the project’s debt financing.
The total cost of the project, including computing hardware, is estimated to exceed $500 billion. The first phase is scheduled to provide 800MW by 2028, with plans for the Portsmouth Technology Campus to eventually house 10GW of data center capacity and power generation.
In addition to the financing guarantee, Nvidia is also discussing separate financing of up to $350 billion for OpenAI’s hardware purchases. The terms of the agreement are still being finalized, and independent verification of the report is pending.
OpenAI’s involvement in the project represents a strategic move to secure more control over large-scale computing infrastructure. The company currently partners with tech giants like Microsoft, Amazon, and Oracle for capacity but aims to establish a long-term lease for dedicated facilities in Ohio.
The proposed agreement with Nvidia has raised concerns about potential conflicts of interest, as the chipmaker could be exposed to credit risks associated with OpenAI’s infrastructure commitments. The exact extent of Nvidia’s liability remains undisclosed, with industry experts projecting significant spending on AI infrastructure in the coming years.
Overall, the collaboration between Nvidia, OpenAI, and SB Energy signals a major development in the AI and data center industry, with implications for the future of computing infrastructure and financial partnerships.
