Nvidia Reportedly Plans $250bn Backstop for OpenAI's Mega Data Center
The deal reflects how AI companies are increasingly securing long-term access to compute, power, and financing to support future growth.
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[Image: Nomita Samaiyar/MITSMR India]
AI chipmaker Nvidia is reportedly preparing to provide a financial backstop worth about $250 billion for OpenAI as part of a massive data center project in Ohio, a deal that could rank among the largest financing arrangements of the AI era.
According to The Wall Street Journal, the backing would help OpenAI lease a 10-gigawatt data center campus being developed by SB Energy, SoftBank’s energy subsidiary. The project is expected to cost more than $500 billion, including the Nvidia chips required to power the facilities, and would become the largest data center project announced to date if completed.
The move would give OpenAI greater control over the infrastructure underpinning its AI models, reducing its reliance on cloud providers such as Microsoft, Amazon, and Oracle.
People familiar with the matter told The Wall Street Journal that Nvidia’s guarantee would support the lease and debt financing needed to build the facility, though it would not cover the cost of the chips themselves. The chipmaker is also reportedly in separate discussions to finance OpenAI’s chip purchases, a package that could total $350 billion. The terms remain under negotiation, and the deal could still fall through.
The project has also attracted support from the U.S. government. Under a recent trade agreement with Japan, SB Energy is expected to invest $33 billion in a natural gas-powered energy project on federal land in Ohio to supply electricity to the facility. The Wall Street Journal reported that U.S. Commerce Secretary Howard Lutnick is involved in decisions over power allocation for the project.
Access to dedicated power infrastructure has become a critical competitive advantage as AI companies race to deploy increasingly compute-intensive models. By combining energy generation, financing, and computing infrastructure, the Ohio project reflects a broader shift toward vertically integrated AI ecosystems.
Nvidia’s backing would also allow SoftBank to raise debt on more favorable terms, according to the report. OpenAI has been in advanced discussions to lease the site for several weeks.
The first phase of the project is expected to deliver about 800 megawatts of capacity by 2028.
The proposed financing structure also underscores how the economics of frontier AI are evolving. Large technology companies are increasingly supporting infrastructure build-outs through financing arrangements that extend beyond supplying hardware. While such structures could accelerate AI deployment, analysts have also warned that increasingly interconnected funding models may amplify financial risks if AI demand or investor sentiment weakens.
