Nvidia Plans to Provide $250 Billion Financial Guarantee for OpenAI Data Center Project
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Nvidia Plans to Provide $250 Billion Financial Guarantee for OpenAI Data Center Project
According to the Wall Street Journal, Nvidia (NVDA.O) is negotiating to provide approximately $250 billion in financial guarantees for OpenAI to support a massive data center project—this will become one of the largest financial transactions in the U.S. artificial intelligence boom. According to people familiar with the matter, Nvidia's guarantee will help OpenAI lease a 10-gigawatt (GW) data center project that SoftBank is developing in southern Ohio. The total cost of the project (including chips deployed within the data center) could exceed $500 billion, making it the largest data center project announced to date. Power for the project is controlled by the U.S. government and separately funded by Japan under a recent trade agreement. U.S. Commerce Secretary Lutnick participated in the power allocation decision. Under the arrangement, Nvidia will provide guarantees for a series of financing instruments to enhance lenders' confidence in the financial security of the project. The terms have not been finalized yet, and the deal could still fall through. This $250 billion guarantee will cover the debt required for data center leasing and construction, but does not include the Nvidia chips within it. (Jin10)
Navigating Web3 tides with focused insightsTechFlow news, July 27, according to the Wall Street Journal, NVIDIA (NVDA.O) is negotiating to provide OpenAI with a financial guarantee of approximately $250 billion to support a massive data center project—this will become one of the largest financial transactions in the U.S. artificial intelligence boom. According to insiders, NVIDIA's guarantee will help OpenAI lease a 10 gigawatt (GW) data center project that SoftBank is developing in southern Ohio.
The total cost of the project (including chips deployed within the data center) may exceed $500 billion, and will become the largest data center project announced to date. Project electricity usage is controlled by the U.S. government, and funded separately by Japan according to a recent trade agreement. U.S. Commerce Secretary Lutnick participated in the electricity allocation decision. Under the arrangement, NVIDIA will provide guarantees for a series of financing instruments to enhance lenders' confidence in the financial security of the project. Terms have not been finalized yet, and the deal could still fall through. This $250 billion guarantee will cover debt required for data center leasing and construction, but does not include the NVIDIA chips within it. (Jin10)
