Nvidia is reportedly in talks to provide a roughly $250 billion financial backstop to help OpenAI lease a 10-gigawatt AI data center campus being developed by SoftBank's SB Energy in southern Ohio, according to The Wall Street Journal, though Reuters has not independently verified the figures. The project, which could cost over $500 billion in total, is tied to a 2025 US-Japan trade deal for its power supply, with a separate $350 billion chip-financing arrangement also under discussion. The report has drawn sharp reactions from investors including Michael Burry and commentator Ed Zitron, who raised concerns about the financing structure as the AI industry's infrastructure race intensifies.
- Nvidia is reportedly in talks to guarantee about $250 billion in financing for OpenAI's Ohio data center project, per WSJ.
- The 10-gigawatt campus, developed by SoftBank's SB Energy, could cost more than $500 billion in total.
- A separate deal for OpenAI's Nvidia chip purchases could add another $350 billion in financing.
- The project's power supply is tied to a 2025 US-Japan trade deal, with US Commerce Secretary Howard Lutnick reportedly involved.
- Investors Michael Burry and Ed Zitron have publicly questioned the financing structure and its risks.
- Reuters has not independently verified the WSJ's reported figures, and deal terms remain unsettled.
A Reported $250 Billion Guarantee
Nvidia is in talks to provide a financial backstop of roughly $250 billion that would help OpenAI lease and finance a massive AI data center campus in southern Ohio, The Wall Street Journal reported on Sunday, July 26, 2026, citing people familiar with the matter. Reuters said it could not immediately verify the report, so the figures should be treated as reported rather than confirmed.
Inside the Ohio Megaproject
The proposed 10-gigawatt campus is being developed by SB Energy, the energy subsidiary of Japan's SoftBank Group, on a decommissioned uranium-enrichment site about 50 miles south of Columbus, Ohio. The project could ultimately cost more than $500 billion, including the Nvidia chips needed to power it, making it one of the largest AI infrastructure builds ever planned. Its first phase is expected to deliver around 800 megawatts of capacity by 2028, before scaling up toward the full 10-gigawatt target.
Why OpenAI Needs a Guarantee
Since OpenAI remains privately held and lacks an investment-grade credit rating, borrowing hundreds of billions of dollars on its own would come at a steep cost. Nvidia's guarantee would cover financing tied to the data center lease and construction debt, giving lenders greater confidence in getting repaid. Separately, Nvidia and OpenAI are reportedly discussing financing for OpenAI's purchase of Nvidia chips, an arrangement that could total another $350 billion on top of the data center guarantee. Notably, Nvidia's own chips are excluded from the data center financing guarantee itself.
A US Government Angle
According to the Journal's reporting, the electricity powering the campus is tied to a 2025 US-Japan trade deal and is effectively controlled by the US government, with Commerce Secretary Howard Lutnick reportedly involved in deciding which companies get access to that power. SB Energy would operate the power plant under a fee arrangement with the government. Terms of the overall deal remain unsettled, and the arrangement could still fall through.
Part of a Bigger Industry Pattern
The Journal noted that similar financing arrangements have already been used elsewhere in the AI industry, including instances where Google has backed data center projects tied to Anthropic. Beyond OpenAI, the report said Microsoft, Google and Anthropic have also held discussions with US officials about the same Ohio site, underscoring how competitive the race for large-scale AI compute capacity has become. If completed, the Ohio campus would mark OpenAI's first major data center as a direct tenant, reducing its reliance on cloud providers such as Microsoft, Amazon and Oracle.
Market Reaction and Skepticism
The report drew sharp reactions from prominent market watchers over the weekend. Investor Michael Burry, known for his bets against the 2008 housing bubble, wrote on X that Nvidia guaranteeing financing tied to OpenAI's chip spending amounted to "around and around we go," while tech commentator Ed Zitron questioned both the financing structure and SoftBank's role in the deal, calling it a bearish sign for the wider AI buildout. Nvidia has already invested $30 billion directly in OpenAI, adding to scrutiny over how deeply intertwined the two companies' finances have become.
What Comes Next
With terms still being negotiated and Reuters unable to independently confirm the WSJ's figures, the deal's final shape remains uncertain. Given the scale involved, any formal agreement between Nvidia, OpenAI and SB Energy would likely draw significant attention from regulators, competitors and investors tracking the rapidly escalating costs of building out global AI infrastructure.
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