Nvidia Slashes Funding Pledge for OpenAI Data Center Project
Nvidia has scaled back its financial commitment to support OpenAI's proposed data center project in Ohio, according to a Wall Street Journal report. The chipmaker is now expected to guarantee less than $120 billion for the initial phase of the project, down from the previously discussed $250 billion.
The change comes after investors raised concerns about Nvidia's risk exposure tied to large financing commitments. This move was made despite Nvidia partnering with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure.
Nvidia and OpenAI are reportedly nearing an agreement, with a deal potentially signed as early as this weekend. The 10-gigawatt project would be the largest data center project announced to date if completed. OpenAI is still discussing a binding lease for the full site, which is being developed by SB Energy, a subsidiary of SoftBank.