Nvidia (NASDAQ:NVDA) is reportedly negotiating a financial guarantee worth approximately $250 billion to support OpenAI’s planned data centre development in Ohio, according to a Wall Street Journal report published on Monday. If completed, the arrangement would rank among the largest financing agreements ever undertaken in the artificial intelligence sector.
People familiar with the discussions told the Wall Street Journal that the proposed guarantee would help OpenAI secure a lease for a planned 10-gigawatt data centre campus being developed in southern Ohio by SoftBank’s energy subsidiary.
Project could exceed $500 billion
The report estimates that the overall cost of the development could eventually surpass $500 billion, including the Nvidia semiconductor chips expected to power the facilities.
According to the Wall Street Journal, Nvidia’s financial backing would make it easier for the project developer to obtain debt financing on more favourable terms by easing lender concerns over OpenAI’s non-investment-grade credit profile.
The proposed guarantee would apply to the lease agreement and construction financing, but would not cover purchases of Nvidia’s AI chips.
Separate financing talks for AI chips
In addition to the proposed guarantee, Nvidia is reportedly discussing a separate financing structure to support OpenAI’s chip purchases, which the newspaper said could total around $350 billion.
The first phase of the Ohio project is expected to deliver approximately 800 megawatts of capacity and is currently scheduled for completion in 2028.
Discussions remain ongoing
The Wall Street Journal noted that negotiations are still underway and that the terms of the agreement have yet to be finalised.
As a result, there is no certainty that the proposed financing package will ultimately be completed.