Nvidia has committed up to $105 billion in guarantees to support OpenAI’s lease of a new massive data centre in Ohio, marking one of the chipmaker’s biggest infrastructure financing moves to date.
- Nvidia guarantees up to $105 billion for OpenAI’s 20-year lease in Ohio
- Exclusive chip provider for data centre with planned 8-gigawatt capacity
- Deal includes $1.5 billion Nvidia investment in SoftBank-backed SB Energy
What happened
Nvidia agreed to provide financial guarantees worth up to $105 billion to back OpenAI’s lease at a new data centre in Pike County, Ohio, which is being developed by SoftBank-backed SB Energy. This represents one of Nvidia’s largest infrastructure financing commitments and includes a $1.5 billion direct investment in SB Energy. The data centre is planned to reach a total capacity of 8 gigawatts, with the first 800 megawatts expected to be operational by 2028.
OpenAI will lease the site for 20 years and Nvidia will act as the exclusive supplier of chips for the facility. The guarantee covers part of the lease and related power payments, ensuring the site retains a minimum value. Should OpenAI default on payments, Nvidia will cover any financial gaps, illustrating its commitment to securing long-term infrastructure for AI computing.
Why it matters
This deal underscores Nvidia’s strategic approach of financing the infrastructure surrounding its AI chips to maintain strong demand as AI development scales rapidly. As demand for AI computing power rises, securing land, power, and long-term operational facilities has become increasingly challenging. Nvidia’s guarantees and investments aim to overcome those hurdles and provide reliable supply chains for AI customers like OpenAI.
However, this approach has sparked scrutiny over potential circular financing between Nvidia and its major customers. Critics question whether such interlinked investments and guarantees genuinely generate value or create complex financial dependencies. Nvidia’s CEO Jensen Huang, however, emphasizes the deal benefits from their scale and long-term perspective on AI infrastructure needs.
What to watch next
Key upcoming developments include the phased launch of the data centre capacity, starting with 800 megawatts in 2028 and eventual expansion up to 8 gigawatts. This facility is expected to significantly bolster AI computing power availability and could contribute hundreds of billions in revenue for Nvidia by 2030 through chip sales to OpenAI and related projects.
Additionally, the larger power and grid infrastructure investments led by SoftBank and SB Energy—totaling over $4 billion—will be important to monitor. The project's success depends on creating sustainable energy and grid solutions to support the huge power demands of AI data centres while addressing local concerns regarding electricity pricing and environmental impact.