Nvidia in talks to back OpenAI's $250B Ohio data center project
According to The Wall Street Journal, Nvidia is in talks to provide a $250 billion financial safety net for OpenAI's data center initiative in southern Ohio. This arrangement would allow OpenAI to rent a 10-gigawatt facility constructed by SB Energy on a former uranium-enrichment site. The overall cost of the project may surpass $500 billion, positioning it as the largest data center venture ever announced. Nvidia aims to give confidence to lenders, given OpenAI's current lack of profitability and investment-grade credit rating. While discussions are ongoing, Nvidia is also considering funding OpenAI's chip purchases, which could total $350 billion. OpenAI has increased its infrastructure spending forecast to $750 billion by 2030 and intends to build a $20 billion data center in Effingham County, Georgia.
Key facts
- Nvidia is in talks to provide a $250 billion financial backstop for OpenAI's Ohio data center project.
- The project is a 10-gigawatt facility built by SB Energy on a decommissioned uranium-enrichment site near Columbus.
- Total cost including chips could exceed $500 billion, making it the largest announced data center project.
- The backstop is needed because OpenAI lacks an investment-grade credit rating.
- Nvidia is also in talks to fund OpenAI's chip acquisition, potentially $350 billion.
- Power is controlled by the U.S. government and funded by Japan under a trade deal.
- Commerce Secretary Howard Lutnick, SoftBank's Masayoshi Son, and Energy Secretary Chris Wright broke ground in March.
- OpenAI has raised projected computing spending to $750 billion through 2030.
Entities
Institutions
- Nvidia
- OpenAI
- SB Energy
- SoftBank
- The Wall Street Journal
- Microsoft
- Amazon
- Oracle
- Anthropic
Locations
- Ohio
- Columbus
- United States
- Japan
- Effingham County
- Georgia
Sources
- Quartz —