Nvidia Cuts Funding for OpenAI Data Center

Nvidia has cut the proposed financial guarantee for OpenAI’s Ohio data center project from $250 billion to less than $120 billion. The decision was made amid investor concerns over hefty AI infrastructure commitments.

Sources said that the revised agreement would see Nvidia back only the initial phase of the project rather than the full 10GW development. The cut follows investor concerns over Nvidia’s exposure to large financing commitments as it uses its balance sheet to support demand for its AI chips. The pair are reportedly nearing an agreement on the financing structure, with a deal potentially due to be signed later this week.

The site forms part of OpenAI’s commitment to US President Donald Trump’s Stargate initiative, aimed at bolstering AI infrastructure in the US. Developed by SoftBank subsidiary SB Energy, the Ohio campus is slated to have 10GW of capacity and would be the largest data centre project announced to date if completed. OpenAI remains in talks over a binding lease covering the project. The project, which would transform the site of the former Portsmouth Gaseous Diffusion Plant, is expected to create more than 10,000 construction jobs and over 2,000 operational positions.

Nvidia’s financing decision also comes several days after it announced partnerships with six financial institutions, including Apollo, BlackRock, Goldman Sachs, and KKR. That partnership should establish compute financing platforms and aims at raising more than $500 billion of third-party capital for AI infrastructure.