Nvidia cuts its OpenAI Ohio backstop from $250B to under $120B
Nvidia is now expected to guarantee under $120 billion for OpenAI's Ohio data center, down from the roughly $250 billion discussed, covering only the first phase of about 800 megawatts due in 2028, after investors raised concerns about its risk exposure. The pullback marks a ceiling on how far a chipmaker will underwrite its own customer's buildout, and OpenAI — unprofitable at an $852 billion valuation — still has no binding lease on the full 10-gigawatt SB Energy campus.
Source: finance.yahoo.com ↗
Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed
Reuters / Wall Street Journal
Why this matters
- → Nvidia caps its customer risk exposure, signaling chipmaker limits on infrastructure underwriting
- → OpenAI still lacks binding lease on full 10GW campus despite $852B valuation
- → Investor pressure reshapes AI infrastructure financing model away from single-vendor backstops
Nvidia pumps the brakes