Nvidia's $105 Billion Backstop for OpenAI's Ohio Site Turns Chipmaker into Infrastructure Guarantor
Nvidia will guarantee up to $105 billion for OpenAI's planned Ohio data center campus, linking chip supply, financing, power generation, and 8GW of AI infrastructure in one major project.
Nvidia has agreed to provide a guarantee of up to $105 billion to help OpenAI lease a sprawling data center campus in Pike County, Ohio, a commitment that positions the chipmaker as the financial anchor of one of the largest AI infrastructure projects ever assembled. The site, developed by SoftBank-owned SB Energy, will have total capacity of up to 8 gigawatts, with the first 800 megawatts expected online in 2028. OpenAI is leasing the facility for 20 years, and Nvidia will be the exclusive chip provider.
The financing structure remains undefined and will include both equity and debt, according to people familiar with the matter. Equity could come from a potential SB Energy IPO and direct SoftBank investment, while debt may include project finance loans and public bonds. Nvidia said its guarantee covers a portion of the lease and power payments, along with a commitment to maintain a minimum site value. If OpenAI defaults, Nvidia would cover the gap between that guaranteed minimum and whatever the owner can recover by re-leasing or selling the facility.
The announcement extends Nvidia's strategy of financing the infrastructure built around its chips, a practice that has raised questions about circular funding flows. Last week, scrutiny intensified after Nvidia partnered with six major financial institutions, including BlackRock, to launch platforms targeting more than $500 billion in third-party AI infrastructure funding. Jensen Huang rejected the circular financing label, saying Nvidia is using "its scale and long-term visibility" to help secure sites where its chips can run across multiple future generations.
Nvidia said the Ohio campus, with an initial capacity of 4.25 gigawatts, could contribute as much as $200 billion to its revenue. Overall, Nvidia could make $600 billion from OpenAI by 2030 if the project expands to 16 gigawatts. SoftBank and SB Energy plan to build at least 10 gigawatts of new power generation and invest $4.2 billion in regional grid infrastructure through a partnership with AEP Ohio. The project is expected to create about 35,000 construction jobs through 2032 and about 2,500 long-term operating jobs. Officials involved point to a low risk of construction delays from local opposition, citing state support and an $80 million commitment to community projects, along with federal land and involvement from the Departments of Commerce and Energy.
Danni Hewson, head of financial analysis at AJ Bell, said investors are right to worry about what looks like a never-ending loop of AI deals, but added that the field of players is not vast and some degree of circular financing was always likely. The test, she said, will be whether these investments generate decent returns for all parties over time.
BuiltWorld AI Operational Take: A $105 billion backstop does not pour concrete or energize switchgear, so the real timeline risk remains the physical delivery of power generation and grid upgrades. The project is relying on 10 gigawatts of new generation that has to be built in parallel with the data halls, which means every month of transmission delay pushes out the 2028 startup and the revenue Nvidia is modeling. Operational teams should treat the financing agreement as a signal of commitment, not a substitute for construction sequencing. The concentration risk also runs both ways; a campus purpose-built for Nvidia architecture becomes harder to re-lease if the original tenant falters, and that is exactly the scenario the guarantee is designed to mitigate.