Nvidia and OpenAI Finalize Ohio Data Center Deal

Nvidia Corp. and OpenAI Group PBC are finalizing a deal to finance a large-scale data-center campus in Ohio developed by SB Energy, a subsidiary of SoftBank. The project aims to establish a 10-gigawatt site, which would be the largest data-center project announced to date.

To mitigate investor risk exposure, Nvidia Corp. reduced its initial financial guarantee from $250 billion to less than $120 billion. This backstop covers approximately half of the project's first phase and is designed to secure the data-center lease and debt to lower borrowing costs. OpenAI Group PBC is currently negotiating a binding lease for the 10 gigawatts of capacity.

Beyond the infrastructure, Nvidia Corp. is discussing a separate financing arrangement for OpenAI Group PBC's chip purchases that could reach $350 billion. The project involves international cooperation, with the Government of Japan funding the power under a trade agreement while the federal government of the United States maintains control over the power supply. Morgan Stanley is advising Nvidia Corp., and Goldman Sachs is advising SB Energy.