Nvidia and OpenAI are in discussions about a backstop of up to $250 billion that would help fund OpenAI's plans to lease a massive new artificial intelligence data center, CNBC confirmed. The backstop would allow OpenAI to raise debt for a 10 gigawatt data center campus in Pike County, Ohio, on the strength of Nvidia's credit, according to a source familiar with the discussions. The guarantee would cover the lease and construction debt, not the Nvidia chips inside, which the two companies are discussing separately. The talks come as OpenAI faces heightened competition from companies like Anthropic, Google, Amazon, and Meta, which are collectively spending hundreds of billions of dollars on AI infrastructure.
Pike County Data Center Campus Specifications
The large site in Pike County, Ohio once functioned as a uranium-enrichment plant, according to a source familiar with the discussions. A gigawatt is a measure of power, and 10 gigawatts is roughly equivalent to the annual power consumption of 8 million U.S. households, according to a CNBC analysis of data from the Energy Information Administration. The data center campus could cost more than $500 billion in total, the person said. The talks about the site and its financing are in progress and still subject to change, according to another source familiar with the plans.
Nvidia and OpenAI Partnership Timeline
In September, Nvidia said it would invest up to $100 billion in OpenAI as part of a strategic partnership where the company would deploy at least 10 gigawatts of Nvidia systems. That investment never materialized, though Nvidia contributed $30 billion to the record-breaking funding round that OpenAI closed in March. Nvidia CEO Jensen Huang said it "might be the last time" the company invests in OpenAI before it goes public. OpenAI confidentially filed for an IPO with the Securities and Exchange Commission in June, but has not disclosed an official timeline for its debut. OpenAI is now valued at nearly $1 trillion by private investors.
SoftBank and SB Energy Development Role
SoftBank and SB Energy are developing the Ohio data center campus in partnership with the U.S. Department of Energy. SoftBank is a major investor in OpenAI, and the two companies announced plans to invest $1 billion in SB Energy earlier this year.
FAQ
What is the purpose of the $250 billion backstop Nvidia is discussing with OpenAI?
The backstop would allow OpenAI to raise debt for a 10 gigawatt data center campus in Pike County, Ohio, on the strength of Nvidia's credit. The guarantee would cover the lease and construction debt, not the Nvidia chips inside, which the two companies are discussing separately.
How much power will the Ohio data center campus consume?
The data center campus is designed for 10 gigawatts of power, which is roughly equivalent to the annual power consumption of 8 million U.S. households, according to a CNBC analysis of data from the Energy Information Administration.
Who is developing the Pike County data center site?
SoftBank and SB Energy are developing the Ohio data center campus in partnership with the U.S. Department of Energy. The site once functioned as a uranium-enrichment plant.
