Nvidia to provide up to $105 billion guarantee for OpenAI's Ohio data center
Nvidia will provide a guarantee of up to $105 billion to support OpenAI’s 20-year Ohio data center lease, developed by SoftBank-owned SB Energy, Reuters reports. Nvidia also plans a $1.5 billion investment in SB Energy. The facility targets up to 8 GW capacity, with 800 MW online in 2028. Nvidia says it will be exclusive chip provider and expects large revenue impact.
How this was made
The 30-second read
Why it matters
The $105B guarantee plus Nvidia’s $1.5B investment and exclusive chip-provider status strengthen Nvidia’s role in OpenAI’s capacity buildout, while also renewing debate about circular funding flows.
Market read
A large, specific Nvidia guarantee tied to an OpenAI data-center lease is a fresh catalyst for AI-infrastructure demand visibility, with investor focus on financing risk and timing to first capacity.
What to watch
The article notes land and power hurdles and that only 800 MW is expected online in 2028, so near-term revenue impact may lag the deal announcement.
Background
Nvidia is expanding infrastructure financing around its chips, including recent partnerships to launch AI-infrastructure financing platforms with major financial institutions.
Ticker impact
Nvidia agreed to provide a guarantee of up to $105 billion for OpenAI’s Ohio data center lease and power payments.
Near-term sentiment likely positive for NVDA on deal size and strategic positioning, with follow-through tied to investor concerns about circular financing.
The article discloses a large, specific financing commitment ($105B guarantee) plus Nvidia’s $1.5B investment and exclusive chip supply, but it does not provide incremental financial guidance beyond revenue contribution estimates.
Market effects
Highlights a financing model where chipmakers underwrite data-center economics, potentially increasing competitive pressure and scrutiny across AI infrastructure supply chains.
Ohio Pike County project emphasizes US power and land constraints, with grid buildout via AEP Ohio as a gating factor for AI capacity timelines.
Reinforces global AI capex financing trends and may influence how investors price AI infrastructure demand durability across the semiconductor and data-center ecosystem.
Counterpoint
The guarantee could be viewed as risk transfer to Nvidia if lease defaults rise, making the economics less certain than the headline size suggests.
Key entities
- companyNvidia
Agreed to provide up to $105B guarantee and invest $1.5B in SB Energy for OpenAI’s Ohio data center.
- companyOpenAI
Leasing the Ohio site for 20 years; pays rent while Nvidia covers a guaranteed minimum value gap if default occurs.
- companySB Energy
SoftBank-owned developer of the Ohio data center and power/grid buildout partnership with AEP Ohio.
- companySoftBank
Backed the infrastructure expansion via prior $1B investment and is linked to SB Energy’s development.
- companyAEP Ohio
Partnered for at least $4.2B in new regional grid infrastructure to support the project.
