Nvidia Corp. is in talks with OpenAI to provide financial guarantees amounting to approximately $250 billion to support its infrastructure projects. This move could become one of the largest financial transactions in the history of the artificial intelligence industry, The Wall Street Journal reports, citing sources.
The guarantees from Nvidia are intended to help the developer of ChatGPT finance the leasing and construction of a giant data center in Ohio. The project, which is expected to have a capacity of 10 gigawatts, is being developed by the energy division of Japan's SoftBank Group. WSJ sources estimate that the total cost of the project, including server installations, could ultimately exceed $500 billion.
Nvidia’s role as a guarantor would allow the developer to secure debt financing on more favorable terms, mitigating risks for creditors associated with OpenAI’s lack of an investment-grade corporate credit rating. The proposed deal structure covers only the costs of leasing and construction, excluding expenses related to the processors themselves.
In addition, the publication reports that Nvidia and OpenAI are concurrently discussing a separate agreement specifically regarding the purchase of graphics accelerators for the new data center. This contract is estimated to be around $350 billion.
The first phase of the computing complex in Ohio is expected to provide approximately 800 megawatts of power, with a planned operational launch in 2028.
Sources from the WSJ emphasize that negotiations are ongoing. Final terms for financing and partnership have yet to be finalized, meaning that the deal could undergo changes or may not come to fruition at all.
