US-based tech giant Nvidia is in discussions to offer approximately $250 billion in financing guarantees to OpenAI for an extensive artificial intelligence data center initiative in the US. The backing, as per The Wall Street Journal, aims to assist the ChatGPT creator in leasing a 10-gigawatt data center campus in southern Ohio developed by SoftBank’s energy arm. The overall project, including the Nvidia chips powering the facility, is estimated to surpass $500 billion in costs.
The proposed $250 billion guarantee would cover the data center lease and debt financing but excludes the chip expenses. Nvidia is also in talks to finance OpenAI’s chip acquisitions valued at up to $350 billion. This deal would be a significant stride for OpenAI towards establishing and managing its AI infrastructure independently, reducing reliance on cloud providers like Microsoft, Amazon, and Oracle.
For Nvidia, this arrangement would ensure enduring demand for its AI chips, crucial for training and operating advanced AI models. The financing support is anticipated to fortify investment mechanisms to reassure lenders about the project’s financial backing. The initial phase of the Ohio facility, projected to be finalized by 2028, will have an 800-megawatt power capacity.
The power supply for the project is overseen by the US government and funded separately by Japan through a recent trade pact tied to Tokyo’s commitment to invest $33 billion in a natural gas plant. Earlier this month, South Korean conglomerates and global tech firms, including Nvidia, agreed to explore collaboration projects valued at around $950 billion. One of the initiatives involves SK Group providing high-performance semiconductors worth $750 billion to global tech companies, including Nvidia.
This collaboration was discussed at a high-level meeting in San Francisco attended by leaders from major global tech firms and South Korea’s prominent business groups, such as Samsung Electronics and SK Group. OpenAI CEO Sam Altman and Nvidia founder and CEO Jensen Huang also participated, highlighting the increasing cooperation between AI developers and semiconductor companies to expedite next-generation computing infrastructure.
