Nvidia and OpenAI in $250 billion data center financing talks
Nvidia is reportedly engaged in discussions to offer approximately $250 billion in financing guarantees for OpenAI, as part of a significant data center initiative, according to the source. The support from Nvidia would assist the ChatGPT developer in leasing a 10-gigawatt project currently being developed by SoftBank’s energy subsidiary in southern Ohio, according to sources familiar with the situation. For OpenAI, a deal would represent the initial move towards managing its own infrastructure rather than relying on rentals from Microsoft, Amazon, and Oracle. In contrast, for Nvidia, it would ensure sustained demand for its chips over the coming years.
The project is anticipated to incur total costs exceeding $500 billion, which encompasses the chips utilised within the data center, as reported. The $250 billion guarantee encompasses the data center lease and debt financing; however, it does not extend to the Nvidia chips housed within the center, according to the source. Furthermore, the chipmaker is reportedly in discussions regarding financing OpenAI’s chip acquisitions, which could amount to as much as $350 billion. Nvidia’s backing would support financing vehicles aimed at reassuring lenders about the project’s funding, the report added.
The initial phase of the project is anticipated to be completed by 2028, generating approximately 800 megawatts of power, according to the source. The power is regulated by the US government and financed independently by Japan as part of a recent trade agreement, linked to Tokyo’s commitment to invest $33 billion in a natural gas facility. US Commerce Secretary Howard Lutnick is engaged in determining access eligibility, as indicated by the report. Nvidia, OpenAI, and the US Commerce Department did not respond to requests for comment outside regular business hours.
OpenAI, engaged in advanced discussions for several weeks regarding the lease of the site, is one of the companies demonstrating significant interest in the project. Additionally, Anthropic, Microsoft, and Google have also communicated with Lutnick in recent weeks, according to the report. The deal highlights a significant trend as technology behemoths are progressively utilising debt and equity markets to finance AI infrastructure, with expenditures projected to exceed $700 billion this year.
