Nvidia is discussing a deal that could make it much more than OpenAI’s biggest chip supplier.
The chip maker is reportedly in talks to guarantee as much as $250 billion in financing that would allow OpenAI to lease computing capacity at a massive AI data center planned for southern Ohio. If completed, it would rank among the largest financial commitments ever linked to AI infrastructure and deepen one of the technology industry’s closest partnerships.
The proposal also stands out because Nvidia would be helping finance the infrastructure that will eventually buy huge volumes of its own AI chips. While the talks remain at an early stage and no agreement has been finalized, the reported arrangement has already raised questions about how AI companies are funding the next phase of the industry’s rapid expansion.
What Nvidia Is Reportedly Offering
According to reports, Nvidia’s guarantee would help OpenAI secure favorable financing for a 10 gigawatt data center campus being developed by SB Energy, a subsidiary of SoftBank, in Piketon, Ohio. The guarantee would cover lease and construction financing rather than the chips themselves.
Separate discussions are also reportedly taking place over financing the Nvidia chips that would power the facility. These purchases could eventually reach another $350 billion, although those talks are also ongoing and no final terms have been announced.
The project itself could cost more than $500 billion when hardware is included, making it the largest AI data center project announced so far.
And the project’s first phase is expected to deliver about 800 megawatts of capacity by 2028 before expanding over time.
Why OpenAI Needs the Backing
OpenAI is looking to build more of its own computing infrastructure instead of depending mainly on cloud providers such as Microsoft, Amazon, and Oracle. Leasing capacity at a dedicated campus like the Ohio data center would give the ChatGPT-maker greater control over the computing power needed to train future AI models.
However, OpenAI does not have an investment grade credit rating. Reports say Nvidia’s financial strength could make it easier for lenders to finance the project on better terms, reducing borrowing costs for the developer and helping move the project forward.
Investors Are Watching Closely
The reported negotiations unsettled investors when they became public. Nvidia shares fell after news of the discussions emerged, reflecting concerns that the company is becoming financially tied to customers that already depend heavily on its hardware.
The talks also show how AI infrastructure spending is evolving. Instead of simply selling chips, companies are increasingly helping finance other companies’ projects that will, in turn, use their chips. Analysts see that as another sign that the race to build AI infrastructure now extends beyond hardware into financing and long term partnerships.
This discussion has also drawn attention because it extends a financing model called “Circular Financing” that some analysts say is becoming more common across the AI industry. Companies are increasingly investing in or financially supporting partners that later become major customers for their chips or cloud infrastructure. As such, Nvidia’s reported discussions with OpenAI have reignited concerns about these increasingly “circular” AI deals.
For now, the negotiations remain ongoing and could still change or fall apart. Even so, the discussions highlight how far the AI industry has moved beyond selling software or processors, as the next stage of competition is increasingly about who can finance, build, and control the enormous computing infrastructure needed to power the next generation of AI.
