Nvidia (NVDA) Stock Falls as $250B OpenAI Financing Deal Emerges
TLDR
- Nvidia is in talks to provide ~$250 billion in financing guarantees to help OpenAI lease a 10-gigawatt data center in Ohio
- The project is being developed by SoftBank’s energy subsidiary and is expected to cost over $500 billion in total
- Nvidia is also discussing a separate deal to finance up to $350 billion in chip purchases for the facility
- OpenAI is the frontrunner for the site, but Anthropic, Microsoft, and Google have also shown interest
- The power supply is controlled by the U.S. government and funded separately by Japan under a recent trade deal
Nvidia stock slipped 0.92% as news broke that the chipmaker is in talks to back a massive OpenAI data center project with roughly $250 billion in financing guarantees, according to the Wall Street Journal.
The project is a 10-gigawatt data center in southern Ohio, being developed by SoftBank’s energy subsidiary. The total cost of the project, including the chips inside, is expected to top $500 billion.
The $250 billion Nvidia backstop would cover the data center lease and debt financing — not the chips themselves. On top of that, Nvidia is separately in talks to finance OpenAI’s chip purchases, worth up to $350 billion.
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