Nvidia Pledges US$105 Billion Guarantee for OpenAI's Ohio AI Data Centre
SingTao · 2 SOURCESabout 1 hour ago2 MIN
Summary
Nvidia has entered into a landmark agreement to provide up to US$105 billion in credit support and guarantees for OpenAI's sprawling AI data centre project in Ohio, marking the chipmaker's biggest infrastructure financing commitment ever. The campus, being developed by SoftBank-backed SB Energy in Pike County, will be leased to OpenAI under a 20-year agreement, with Nvidia exclusively supplying AI computing infrastructure. The deal underscores how major technology firms are increasingly bundling chips, power and data centre development as they race to meet soaring AI demand.
Key Points
- Nvidia will guarantee up to US$105 billion in lease payments and provide credit support for land, power and shell construction tied to an initial 4.25 gigawatts of capacity
- The chipmaker is investing US$1.5 billion in SB Energy and securing rights to up to 8 gigawatts of AI computing capacity at the Pike County site
- First phase capacity of 4.25GW is expected to come online in phases beginning in 2028, with an option for Nvidia to secure the remaining 3.75GW
- SoftBank and SB Energy plan at least 10 gigawatts of new power generation and US$4.2 billion in regional grid infrastructure through a partnership with AEP Ohio
- OpenAI's spending on Nvidia chips for compute capacity is projected to reach approximately US$600 billion by 2030, according to Nvidia CEO Jensen Huang
- The project is expected to create about 35,000 construction jobs by 2032 and approximately 2,500 long-term operating positions
- Jensen Huang has denied the arrangement constitutes circular financing, stating Nvidia only supports projects with clear customer demand
Why It Matters
This deal highlights how Nvidia is moving beyond chip sales to become a direct financier of AI infrastructure, potentially creating interdependencies that blur traditional vendor-customer boundaries. For Hong Kong investors, the agreement signals the massive capital requirements of AI development and underscores why infrastructure bottlenecks—including power, land and grid capacity—are emerging as critical constraints on AI expansion globally .
This deal highlights how Nvidia is moving beyond chip sales to become a direct financier of AI infrastructure, potentially creating interdependencies that blur traditional vendor-customer boundaries. For Hong Kong investors, the agreement signals the massive capital requirements of AI development and underscores why infrastructure bottlenecks—including power, land and grid capacity—are emerging as critical constraints on AI expansion globally .