SynopsisAccording to the report 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, the report said. The change were made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments.ReutersNvidia 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 were 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, 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. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now
Nvidia scales back funding guarantee for Ohio OpenAI data centre: WSJ - The Economic Times
According to the report 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, the report said. The change were made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments.
Nvidia scales back Ohio OpenAI data center guarantee from $250B to under $120B, covering only phase one after investor concern over risk exposure. Signal that even the chip leader is retreating from ultra-large-scale infrastructure commitment; OpenAI must source alternative funding despite $852B valuation but persistent unprofitability.









