Nvidia and OpenAI negotiating a potential $250 billion safety net to support AI infrastructure initiatives.

Nvidia and OpenAI negotiating a potential $250 billion safety net to support AI infrastructure initiatives.
Summary
OpenAI seeks a $250 billion backstop from Nvidia for an AI data center project.
The funding aims to help lease a 10-gigawatt facility in Ohio.
The project could exceed $500 billion in total costs, including construction expenses.

Share

Bookmark

Newsletter

OpenAI is currently engaged in talks with Nvidia regarding a potential financial backstop of up to $250 billion, aimed at supporting its ambitious initiative to lease a large-scale artificial intelligence data center. This information was confirmed by CNBC, with sources indicating that the backstop would allow OpenAI to secure funding for a significant 10-gigawatt data center campus situated in Pike County, Ohio, leveraging Nvidia's strong credit profile.

An insider, who chose to remain anonymous due to the sensitive nature of the discussions, explained that the financial guarantee would primarily cover lease agreements and construction expenses, excluding any costs associated with the Nvidia chips, which are part of separate negotiations. Nvidia opted not to comment on the matter, although The Wall Street Journal was the first to reveal the existence of these negotiations.

The Ohio site in question previously served as a uranium-enrichment facility. To put the scale into perspective, 10 gigawatts of power is roughly equivalent to the annual electricity consumption of around 8 million American households, according to analysis by CNBC using data from the Energy Information Administration. The total investment required for the data center campus could exceed $500 billion, as indicated by the anonymous source.

Conversations surrounding the financing and development of the site are ongoing and may evolve over time, according to another individual familiar with the situation, who also requested anonymity.

Loading comments...