According to the Wall Street Journal, NVIDIA (NVDA.O) is negotiating to provide approximately $250 billion in financial guarantees to support OpenAI’s massive data center project, which would become one of the largest financial transactions in the U.S. AI boom. According to people familiar with the matter, NVIDIA’s guarantee will help OpenAI lease a 10-gigawatt (GW) data center project under development by SoftBank in southern Ohio. The total cost of the project—including the chips deployed within the data center—could exceed $500 billion, making it the largest data center project ever announced. The project’s power supply is controlled by the U.S. government and funded separately by Japan under a recent trade agreement. U.S. Secretary of Commerce Lutnick has been involved in decisions regarding power allocation. Under the arrangement, NVIDIA will provide guarantees for a series of financing instruments to bolster lenders’ confidence in the project’s financial security. Terms have not been finalized, and the deal could still fall through. The $250 billion guarantee will cover debt required for leasing and constructing the data center, but not the NVIDIA chips within it. (Jinshi)
NVIDIA to Provide a $25 Billion Financial Guarantee for OpenAI’s Data Center Project
TechFlowShare
Summary
NVIDIA to Provide a $25 Billion Financial Guarantee for OpenAI’s Data Center Project. The project announcement includes a 10-gigawatt facility in southern Ohio, led by SoftBank. Total costs could exceed $50 billion, with NVIDIA chips playing a critical role. Electricity supply is supported by U.S. government oversight, with funding from Japan under a recent trade agreement. The funding announcement indicates that NVIDIA’s guarantee is intended to bolster lender confidence. Terms remain under negotiation and are subject to change.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.