Over the weekend, ‘Big Short’ investor Michael Burry and tech commentator Ed Zitron voiced concerns after a report said Nvidia Corp (NASDAQ:NVDA) is considering backing billions of dollars in financing to support OpenAI's massive AI infrastructure expansion.
Nvidia Reportedly Weighs Financing Guarantee For OpenAI Nvidia is in talks to provide a roughly $250 billion financial backstop for OpenAI as part of a massive data center project in southern Ohio that could ultimately cost more than $500 billion, according to a Wall Street Journal report citing people familiar with the matter.
The proposed guarantee would help OpenAI secure favorable financing for a planned 10-gigawatt AI campus despite the ChatGPT maker lacking an investment-grade credit rating.
The report said Nvidia would guarantee financing tied to the data center lease and construction debt, while separately discussing financing for the purchase of Nvidia chips that could total another $350 billion.
The project is being developed by SoftBank Group's (OTC:SFTBF) (OTC:SFTBY) energy subsidiary and is expected to deliver about 800 megawatts in its first phase by 2028.
