Nvidia weighs backing OpenAI with $250bn for Ohio data centre

Nvidia is in talks to provide about $250 billion in financing guarantees to OpenAI for a vast data centre project in southern Ohio, in a move that could reshape how the ChatGPT maker secures computing capacity for artificial intelligence.

The arrangement under discussion would help OpenAI lease a 10-gigawatt site being developed by SB Energy, a SoftBank subsidiary, the Wall Street Journal reported. The project is expected to cost more than $500 billion overall, including the Nvidia chips planned for the facility.

Shift away from rented capacity

For OpenAI, the proposed deal would mark an early step toward building control over its own infrastructure rather than continuing to rely on rented capacity from Microsoft, Amazon and Oracle. For Nvidia, the plan would lock in long-term demand for its chips as spending on AI infrastructure accelerates.

The Journal said Nvidia's proposed $250 billion guarantee would cover the data centre lease and debt financing, but not the chips inside the facility. It added that the chipmaker was also discussing financing OpenAI chip purchases worth up to $350 billion.

First phase targeted for 2028

The first phase of the Ohio project is expected to be completed in 2028 and provide around 800 megawatts of power. The wider facility is expected to be among the largest of its kind and is planned on federal and private land in southern Ohio.

The power supply is controlled by the US government and is being funded separately by Japan under a recent trade deal linked to Tokyo's pledge to invest $33 billion in a natural gas plant. US Commerce Secretary Howard Lutnick is involved in decisions over access to the power, the Journal said.

Funding questions remain

OpenAI has been in advanced talks for several weeks to lease the site and is among the strongest interested parties. Anthropic, Microsoft and Google have also held recent discussions with Lutnick, according to the Journal.

Despite OpenAI's $852 billion valuation, the company remains unprofitable, raising questions about how it will meet the huge financial commitments tied to AI infrastructure. The broader push by technology companies to tap debt and equity markets for such projects comes as spending on AI infrastructure is expected to top $700 billion this year.

Nvidia, OpenAI and the US Commerce Department did not respond to requests for comment. Reuters said it could not immediately verify the report.