Nvidia May Provide $250 Billion Backstop for OpenAI’s Ohio Data Center

Nvidia (NASDAQ:NVDA) is reportedly discussing a major financial commitment that could help OpenAI secure one of the largest data center projects ever proposed.

According to The Wall Street Journal, Nvidia may provide a financial backstop of approximately $250 billion for a new artificial intelligence data center in southern Ohio. The support would make it easier for OpenAI to sign a long-term lease and help the project obtain construction financing.

The facility is being developed by SB Energy, the power subsidiary of SoftBank, on the site of a former uranium-enrichment plant approximately 50 miles south of Columbus.

Project Could Cost More Than $500 Billion

The planned campus could eventually use around 10 gigawatts of electricity. Including the cost of Nvidia chips and other computing equipment, the total investment could exceed $500 billion.

That would make it the largest publicly announced data center project to date.

Under the proposed arrangement, Nvidia would support financing instruments intended to reduce the risks for banks and other lenders. OpenAI is not yet profitable and does not have an investment-grade credit rating, making it more difficult for the company to secure such a large amount of financing independently.

The negotiations are still ongoing, and there is no guarantee that a final agreement will be reached.

Nvidia Could Also Help Finance Chip Purchases

The reported $250 billion commitment would cover lease obligations and construction financing. It would not include the cost of the processors required to operate the data center.

In a separate negotiation, Nvidia may also help OpenAI finance up to $350 billion in chip purchases. Nvidia has already invested approximately $30 billion in OpenAI.

This arrangement could create a circular relationship: Nvidia would help finance OpenAI’s infrastructure, while OpenAI would use a large portion of that financing to purchase Nvidia’s AI chips.

For Nvidia, the project could secure significant long-term demand for its graphics processors, networking equipment and data center systems. However, it could also increase the company’s financial exposure to OpenAI and the broader AI infrastructure market.

Government and Japanese Funding Support the Power Supply

Electricity access for the Ohio site is controlled by the U.S. government. Part of the power infrastructure is expected to be financed by Japan under a recent trade agreement with the United States.

Japan has agreed to invest $33 billion in a natural-gas power project located on federal land. The two countries would initially share proceeds from electricity sales. After Japan recovers its investment, the U.S. government’s share would increase to 90%.

The project’s first phase is expected to be completed in 2028 and provide approximately 800 megawatts of power. The full campus would eventually require roughly 10 gigawatts.

OpenAI, Anthropic, Microsoft and Google have reportedly discussed possible access to the site with U.S. Commerce Secretary Howard Lutnick.

OpenAI Wants More Control Over Its Infrastructure

The Ohio facility would be the first major data center leased directly by OpenAI.

Until now, the company has largely depended on cloud providers such as Microsoft, Amazon and Oracle for computing capacity. Leasing infrastructure directly could give OpenAI greater control over its costs, available computing power and future expansion.

OpenAI has reportedly raised its projected infrastructure spending through 2030 to approximately $750 billion, compared with an earlier estimate of around $600 billion.

The company has also announced plans to invest $20 billion in its first wholly owned data center in Effingham County, Georgia.

What the News Means for Nvidia Stock

For Nvidia investors, the talks highlight the extraordinary scale of expected spending on AI infrastructure.

A completed agreement could strengthen Nvidia’s position as OpenAI’s primary hardware supplier and support demand for its AI accelerators for several years. The project could also benefit suppliers of servers, networking equipment, cooling systems, energy infrastructure and data center construction services.

At the same time, the proposed financing introduces additional risk. Nvidia would not simply be selling chips—it could also be helping guarantee the financing that allows its customer to buy them.

Investors should therefore watch the final structure of the agreement, Nvidia’s maximum financial liability and whether OpenAI can generate enough revenue to support its rapidly expanding infrastructure commitments.