Nvidia Banks on $105 Billion Deal with OpenAI Amid Industry Financing Fears
Nvidia has agreed to provide up to $105 billion in financing for OpenAI's massive data center campus in Ohio. The chipmaker will also invest $1.5 billion into SB Energy, which is developing the site.
The deal means that OpenAI has committed to exclusively using Nvidia chips at the site. The company plans to lease the site for 20 years and eventually provide 8 gigawatts (GW) of compute power, which is more than enough energy to power New York City on a typical day.
Nvidia's $105 billion guarantee is not a direct investment but rather a promise to cover any unpaid lease and power obligations if OpenAI defaults. The company expects the first 4.25 GWs alone to bring in about $200 billion in chip sales, with most of its revenue coming from companies that rely on OpenAI.
The deal comes at a complicated time for Nvidia and the AI industry, with many investors nervous about the increasingly tangled ecosystem of financing between Nvidia and its top customers.