**Nvidia’s $250 Billion Financing Guarantee Proposal to Support OpenAI’s 10GW Ohio Data Centre Project**
Nvidia is reportedly engaged in advanced negotiations to provide a $250 billion financing guarantee in support of a proposed 10GW data centre project in Ohio being considered by OpenAI. This move represents a significant expansion of Nvidia’s role beyond its traditional position as a supplier of computing and networking equipment, adding a layer of financial backing for the infrastructure development.
The project, planned for the Portsmouth Site in Pike County, is being developed by SB Energy, a subsidiary of SoftBank. OpenAI has been in discussions for several weeks to become the primary tenant of the facility. According to *The Wall Street Journal*, the proposed guarantee is structured as a financial backstop rather than a direct $250 billion investment. Its purpose would be to support obligations tied to OpenAI’s lease and the project’s debt financing, offering lenders additional security should the development proceed.
The overall project is estimated to cost more than $500 billion, encompassing both the data centre infrastructure and the computing hardware installed within it. The first phase is projected to deliver approximately 800MW of capacity by 2028, while the broader Portsmouth Technology Campus aims to eventually accommodate 10GW of data centre capacity supported by 10GW of new power generation capabilities.
The energy plan for the site includes at least 9.2GW of natural gas generation, as stated by the Department of Energy. It is important to note that Nvidia’s proposed guarantee would not cover the GPUs and other hardware to be used at the site. The chipmaker is also reportedly discussing separate financing arrangements worth up to $350 billion to assist OpenAI in purchasing its hardware.
The financing support is being structured through vehicles designed to reassure lenders regarding the project’s funding stability. However, the terms are still under discussion, and *Reuters* has indicated that it could not independently verify the *Wall Street Journal*’s report.
**Financing a 10GW AI Campus**
Nvidia’s backing is intended to strengthen support for OpenAI’s lease obligations. As OpenAI currently remains unprofitable and lacks an investment-grade credit rating, scrutiny surrounding how the company would finance its commitments for such a large-scale project remains high.
The development also requires substantial power and transmission infrastructure beyond the data centre buildings themselves. SB Energy and AEP Ohio plan to invest $4.2 billion in new and upgraded high-voltage transmission infrastructure, including 765kV lines and four substations, according to the Department of Energy.
*The Information* reported in June that OpenAI had discussed a potential 20-year lease agreement under which it would exercise control over the equipment deployed at the site. SB Energy would continue to be responsible for developing the campus, while Nvidia’s reported involvement would encompass the proposed guarantee and separate support for hardware purchases.
The project is expected to utilise federal and privately owned land at the former Portsmouth Gaseous Diffusion Plant. The Department of Energy is leasing federal land to an SB Energy-affiliated company, while SB Energy has committed funding towards accelerated environmental cleanup and redevelopment of the former uranium-enrichment site.
Power generation financing is being handled separately from the data centre lease and Nvidia’s hardware arrangements. The energy plan includes $33.3 billion in Japanese funding for 9.2GW of natural gas generation under a US–Japan trade and investment agreement.
The new generation and transmission infrastructure will connect the campus to the regional grid. The Department of Energy has indicated that SB Energy and AEP Ohio will fund the transmission work rather than passing those costs on to local ratepayers.
*The Journal* reported that the US government is involved in decisions regarding access to the project’s power supply. US Commerce Secretary Howard Lutnick is reportedly engaged in these discussions, with Anthropic, Microsoft, and Google also having spoken to him about the site recently.
**OpenAI Expands Its Infrastructure Arrangements**
OpenAI’s participation in the Ohio project would expand its efforts to secure direct control over large-scale computing infrastructure. Currently, the company obtains capacity through agreements with Microsoft, Amazon, and Oracle. The Ohio project would add a long-term lease for dedicated facilities alongside its existing cloud arrangements.
Under the proposed arrangement, OpenAI would control the equipment deployed at the site, while SB Energy would manage the development and operation of the campus infrastructure. The lease would exist alongside, rather than replace, OpenAI’s current cloud agreements.
OpenAI has partnerships in place covering significant capacity, including a February agreement with Amazon for 2GW of AWS Trainium capacity. The company also has infrastructure commitments involving Microsoft and Oracle through the Stargate programme.
Nvidia already supplies computing systems and networking equipment used in large AI clusters. The proposed guarantee would add a financing role to this commercial relationship, linking Nvidia more closely to a project expected to be a major purchaser of its hardware.
This arrangement has drawn scrutiny due to the potential conflict of interest, as Nvidia would be supporting financing for infrastructure that could become a significant customer for its own products. *Reuters Breakingviews* has noted that the proposed guarantee could expose Nvidia to credit risk related to OpenAI’s ability to meet its infrastructure commitments.
The size and specific conditions of Nvidia’s potential liability have not been disclosed. *The Journal* reported that technology company spending on AI infrastructure is expected to exceed $700 billion this year.
**(Photo by Scott Rodgerson)**
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### FAQ
**Q1: What is the proposed $250 billion financing guarantee by Nvidia?**
The $250 billion financing guarantee is a financial backstop proposed by Nvidia to support OpenAI’s potential lease of a 10GW data centre project in Ohio. It is not a direct investment but a guarantee meant to reassure lenders and support obligations tied to the lease and project financing.
**Q2: Which companies are involved in the project?**
The project involves Nvidia, OpenAI, SB Energy (a SoftBank subsidiary), and AEP Ohio. The US Department of Energy is also involved in leasing federal land and overseeing power generation plans.
**Q3: Where will the data centre be located?**
The data centre will be located at the Portsmouth Site in Pike County, Ohio, on federal and privately owned land at the former Portsmouth Gaseous Diffusion Plant.
**Q4: What is the expected timeline and capacity?**
The first phase is expected to deliver around 800MW in 2028. The wider campus is planned to eventually include 10GW of data centre capacity supported by 10GW of new power generation.
**Q5: Will Nvidia’s guarantee cover the GPUs used at the site?**
No, Nvidia’s proposed guarantee will not cover the GPUs and other hardware used at the site. Nvidia is also discussing separate financing of up to $350 billion for OpenAI’s hardware purchases.
**Q6: What are the power and transmission plans for the project?**
The project includes at least 9.2GW of natural gas generation, supported by $33.3 billion in Japanese funding. SB Energy and AEP Ohio plan to invest $4.2 billion in new and upgraded high-voltage transmission infrastructure.
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### Conclusion
Nvidia’s reported $250 billion financing guarantee proposal marks a notable development in the intersection of technology infrastructure and corporate finance. By extending its involvement into financial backing, Nvidia is deepening its engagement with one of the most ambitious AI projects currently in discussion. The proposed 10GW data centre in Ohio, led by OpenAI and developed by SB Energy, represents a potential landmark in large-scale AI infrastructure. However, the terms of the guarantee and the associated credit risks remain under discussion, with independent verification still pending. As AI-driven demand for computing power continues to surge, initiatives like this highlight the growing complexity of building and financing the next generation of digital infrastructure.
