Nvidia is reportedly providing a $250 billion financial guarantee to help OpenAI secure debt financing for a massive 10-gigawatt data center campus in southern Ohio. This move dramatically lowers borrowing barriers for OpenAI, which lacks an investment-grade credit rating despite drawing 900 million weekly ChatGPT users. The project’s total cost, including Nvidia chips, exceeds $500 billion, making it the largest data center development ever announced.
Massive Ohio Campus and Strategic Partnerships
The Ohio data center is being developed by SoftBank’s energy wing and strategically located near a decommissioned uranium enrichment plant. Power will come from a natural gas facility backed by $33 billion in Japanese investment connected to a recent U.S.-Japan trade deal. The first phase, delivering roughly 800 megawatts, is slated for 2028, but full 10-gigawatt capacity will roll out over several years. Commerce Secretary Howard Lutnick has a role in deciding which tech giants gain access to this power, with OpenAI currently leading the talks amid competition from Microsoft, Alphabet, and Anthropic.
Nvidia’s Growing Financial Exposure Raises Eyebrows
Separately, Nvidia is negotiating another financing deal with OpenAI for up to $350 billion in chip purchases. If this closes, Nvidia’s total financial backing could near $600 billion toward a single customer. This enormous exposure has sparked public criticism. Investor Michael Burry and commentator Ed Zitron questioned the sustainability and source of funding behind these guarantees. Nvidia closed at $206.84 on July 23 with a market cap over $5 trillion and a 65% year-over-year revenue increase, fueling bullish analyst targets despite concerns over concentrated customer risk and insider selling trends.
This material is for informational purposes and not financial advice.
