NVIDIA stock fell by about 0.92% on July 27; the same day, Reuters, citing a Sunday report from The Wall Street Journal, said NVIDIA is in talks to provide about $250 billion in financing guarantees for OpenAI, as part of OpenAI’s 10-gigawatt data center project in southern Ohio developed by SoftBank’s energy subsidiary.
NVIDIA Guaranteed Deal Structure: $250 Billion Covers Lease and Debt Financing
According to the WSJ, the $250 billion that NVIDIA would guarantee would cover the data center’s lease and debt financing, but not NVIDIA chips inside the center. NVIDIA’s support would help back financing tools designed to reassure lenders about the project’s funding sources. In addition, NVIDIA is also discussing providing financing for OpenAI’s chip procurement of up to $350 billion.
According to the WSJ, the plan’s key figures are expected to be as follows:
Lease and Debt Financing Guarantee: about $250 billion (provided by NVIDIA, excluding chips)
Chip Procurement Financing Talks: up to $350 billion
Total Project Cost: expected to exceed $500 billion (including chips inside the data center)
Phase 1 Completion Timeline: expected in 2028, with power generation of about 800 megawatts
Power Funding Party: the Japanese government, tied to a commitment to build a $33 billion natural-gas power plant
Power Allocation Decision-Maker: U.S. Commerce Secretary Howard Lutnick
OpenAI and NVIDIA’s Strategic Interests
For OpenAI, reaching an agreement would be a first step toward controlling its own infrastructure rather than leasing it from Microsoft, Amazon, and Oracle. For NVIDIA, it would help ensure demand for its chips in the coming years.
The WSJ reported that OpenAI has been in in-depth talks for weeks about leasing the site and is one of the companies showing the strongest interest in the project. Anthropic, Microsoft, and Google have also recently reached out to Lutnick. The deal highlights a broader shift in which tech giants are increasingly using debt and equity markets to fund AI infrastructure, with industry spending expected to exceed $700 billion this year.
FAQ
What exactly does the financing guarantee NVIDIA would provide to OpenAI cover?
According to people familiar with the matter cited by the WSJ, NVIDIA’s roughly $250 billion guarantee would cover the leasing and debt financing of an Ohio data center, but not NVIDIA chips inside the center. NVIDIA is also in talks to provide financing for OpenAI’s chip procurement of up to $350 billion. Reuters said it was unable to verify the report immediately, and NVIDIA did not respond to a request for comment outside normal business hours.
What is the scale and power source for the Ohio data center project?
According to the WSJ, the project is expected to have a total cost of more than $500 billion (including chips) for a 10-gigawatt plan being developed by a SoftBank energy subsidiary. The power would be controlled by the U.S. government and, under a recently reached trade agreement, funded separately by Japan, tied to Tokyo’s pledge to invest $33 billion to build a natural-gas power plant. Phase 1 is expected to be completed in 2028, with power generation of about 800 megawatts.
Besides OpenAI, which other companies are interested in this project?
According to the WSJ, OpenAI is currently one of the companies showing the strongest interest in the project. Anthropic, Microsoft, and Google have also recently reached out to U.S. Commerce Secretary Howard Lutnick, who would be involved in deciding who can obtain power-use rights for the project.
