Why Nvidia (NVDA) Just Cut Its OpenAI Data Center Guarantee in Half

TLDR

• Nvidia has cut its planned financial guarantee for OpenAI’s Ohio data center from $250 billion to under $120 billion initially.
• The change came after investors raised concerns about Nvidia’s risk exposure to large financing commitments.
• A deal between Nvidia and OpenAI could be signed as early as this weekend.
• The Ohio project is a 10-gigawatt data center developed by SB Energy, a SoftBank subsidiary, and would be the largest ever if completed.
• Nvidia separately launched compute financing platforms this week with six major financial institutions, targeting over $500 billion in third-party AI infrastructure capital.

Nvidia has scaled back how much it is willing to guarantee for OpenAI’s planned Ohio data center, according to a Wall Street Journal report published Friday.

WSJ reports that Nvidia is cutting its proposed OpenAI data-center guarantee from $250B to below $120B, reducing its initial balance-sheet exposure.

The revised backstop would cover only the first roughly 5GW of a planned 10GW Ohio campus.

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