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Nvidia said investments in AI firms would provide an investment return, but critics worry such moves could create artificial inflation of demand
Nvidia Corp is in discussions to provide a financing guarantee to help OpenAI lease computing from a US data center project planned for 2028, underscoring how the world’s most valuable company is funneling capital into the infrastructure that drives its business.Nvidia is in discussions to help the creator of ChatGPT lease a US$500 billion, 10-gigawatt hub that Softbank Group Corp is overseeing in Ohio, people familiar with the matter said. The US chipmaker might provide a guarantee of as much as US$250 billion to the artificial intelligence (AI) lab, one of the people said.
The logos of OpenAI and Nvidia are displayed on a mobile phone and laptop screen respectively in Liverpool, England, on June 9.
Negotiations are in their early stages and could collapse or financing terms might change, the people said.A guarantee by Nvidia would highlight the increasingly circular financing behind the AI boom, as tech giants fund ever-larger projects that ultimately generate business for themselves. Investors have over the past few weeks begun to cool on lofty tech stock valuations, worried that there are more capacity under construction than future AI services would require.
