Jerusalem Post/Business & Innovation/Tech & Start-upsNvidia is in discussions to provide a massive financial backstop for OpenAI, paving the way for the construction of the largest data center in history.Follow us on GoogleNVIDIA(photo credit: REUTERS)ByWALLA! MONEYJULY 27, 2026 15:55Another mega-deal is poised to reshape the artificial intelligence industry: Chipmaking giant Nvidia is in talks to provide financial guarantees on a massive scale of approximately $250 billion for OpenAI, The Wall Street Journal reported. The move is designed to support a massive infrastructure project to establish a data center whose total cost is expected to cross the $500 billion mark, including the cost of the chips housed within it.According to sources familiar with the matter, the safety net provided by Nvidia will help the ChatGPT creator lease a grandiose 10-gigawatt project being developed by SoftBank's energy subsidiary in southern Ohio. The emerging deal represents a strategic milestone for both companies: For OpenAI, it marks a first step toward achieving control over independent infrastructure, rather than relying on renting resources from tech giants such as Microsoft, Amazon, and Oracle. For Nvidia, on the other hand, the guarantee will ensure stable, high demand for its chips for many years to come.The $250 billion guarantee in question is intended to cover the lease of the data center and the debt financing, but it does not include the Nvidia chips themselves that will be installed at the site. Alongside this, The Wall Street Journal reported that the chipmaker is also concurrently discussing financing OpenAI's chip purchases worth up to an additional $350 billion. Support from Nvidia is expected to back financing mechanisms designed to ease lenders' concerns and ensure the project's fiscal stability.According to the report, the first phase of the project is expected to be completed in 2028 and will provide approximately 800 megawatts. The electricity for the facility is under US government control and is being funded separately by Japan under a recently signed trade agreement, linked to Tokyo's commitment to invest $33 billion in a natural gas-powered power plant. US Commerce Secretary Howard Lutnick is actively involved in decision-making regarding the identity of the companies that will receive access to the energy resources.OpenAI, which has been in advanced talks for several weeks to lease the site, is among the companies showing the greatest interest in the project, while other mega-corporations such as Anthropic, Microsoft, and Google have also spoken with Lutnick in recent weeks.The entire move underscores a broader and deeper trend in the technology market, in which industry giants are increasingly turning to debt and capital markets to fund artificial intelligence infrastructure, an area where spending is expected to cross the $700 billion mark this year.Follow us on Google