Nvidia Scales Back OpenAI Bet Amid Investor Pressure
Nvidia is scaling back its ambitious bet on OpenAI after facing investor pressure over concerns about risk exposure.
The company had originally planned to guarantee $250 billion in funding for OpenAI's data center deal, but has now agreed to a significantly reduced initial guarantee of just under $120 billion.
This revised deal covers the first construction phase, which would deliver approximately five gigawatts of capacity. Meanwhile, OpenAI is separately negotiating a lease for the full 10-gigawatt project being developed by SB Energy, a SoftBank subsidiary.
Nvidia is also in talks over separate financing for OpenAI's chip purchases worth up to $350 billion.
The move has given ammunition to critics who have warned about an AI bubble. However, Anthropic's explosive growth may be seen as muddying the narrative - its revenue more than doubled in a single quarter, jumping from $4.73 billion in Q1 to over $11.5 billion in Q2.