Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports

Aug 14 (Reuters) – Nvidia (NVDA.O), opens new tab 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, the Wall Street Journal reported on Friday, citing people familiar with the matter.

• The ​Journal said Nvidia and OpenAI are nearing an ​agreement, with the chipmaker expected to provide a ⁠financial backstop only for the first phase of the ​project. A deal could be signed as early as this ​weekend, according to the report.
• The change was made after investors raised concerns about Nvidia’s risk exposure tied to large financing commitments, ​the newspaper said.
• This came after Nvidia on Monday partnered ​with six major financial institutions to launch compute financing platforms aimed at ‌raising ⁠over $500 billion in third-party capital for AI infrastructure.
• OpenAI is still discussing a binding lease for the full 10-gigawatt project in Ohio, WSJ said. The site is being ​developed by SB ​Energy, a ⁠subsidiary of SoftBank (9984.T), opens new tab, and would be the largest data center project announced to date if ​completed.
• Nvidia did not immediately respond to a request ​for ⁠comment outside regular business hours. OpenAI declined to comment.
• The project would help OpenAI move toward owning AI infrastructure, although ⁠its ​ability to fund large-scale commitments remains ​under scrutiny because the company is unprofitable despite a valuation of $852 billion.