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OpenAI Announces Major Investment in New Ohio Data Center Project with NVIDIA’s $1.5 Billion Guarantee Support

OpenAI has entered into a 20-year lease agreement with SB Energy, a subsidiary of SoftBank, for a data center designed to deliver 10 gigawatts of computing capacity. The facility is set to be built in Ohio, the United States, and is projected to emerge as one of the largest AI computing centers ever constructed. As part of this arrangement, NVIDIA will invest $1.5 billion in SB Energy in exchange for equity stakes, while also providing a guarantee for the project’s asset value to assist the developer in securing debt financing more efficiently.
Chip Manufacturer Acts as Financing Guarantor
NVIDIA’s guarantee initially covers the first phase of the project, which is planned to have a power capacity of around 5 gigawatts. Under the terms, NVIDIA will serve as the exclusive chip supplier for the initial half of the data center facility, with the option to extend its support to the full 10 gigawatts capacity later. This structure gives lenders greater confidence, as even if OpenAI decides not to renew the lease in the future, the completed data center will still hold significant asset value, thereby helping to keep overall financing costs low.
It is important to note that NVIDIA’s exposure to risk is carefully managed. The guarantee applies only to the completed infrastructure, and it operates through a phased risk mitigation approach: should OpenAI exit the partnership, SB Energy must first rent the facility back at its original price before attempting to sell it. NVIDIA will only cover any shortfall between the selling price and the facility’s actual value, with a maximum coverage amount of approximately $10.5 billion for the first phase.
This transaction represents the latest development in the ongoing competition among AI companies to secure access to powerful computing resources. In recent years, chip leaders such as NVIDIA and Google have increasingly leveraged their financial strength to support startups like OpenAI and Anthropic. This approach enables developers to obtain financing based on lease agreements while keeping their own risk levels under control. After several weeks of negotiations, the deal was finalized on Monday, with the three parties also adjusting the scale of NVIDIA’s guarantee to address concerns related to its potential risk exposure.
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OpenAI has entered into a 20-year lease agreement with SB Energy, a subsidiary of SoftBank, for a data center designed to deliver 10 gigawatts of computing capacity. The facility is set to be built in Ohio, the United States, and is projected to emerge as one of the largest AI computing centers ever constructed. As part of this arrangement, NVIDIA will invest $1.5 billion in SB Energy in exchange for equity stakes, while also providing a guarantee for the project’s asset value to assist the developer in securing debt financing more efficiently.
Chip Manufacturer Acts as Financing Guarantor
NVIDIA’s guarantee initially covers the first phase of the project, which is planned to have a power capacity of around 5 gigawatts. Under the terms, NVIDIA will serve as the exclusive chip supplier for the initial half of the data center facility, with the option to extend its support to the full 10 gigawatts capacity later. This structure gives lenders greater confidence, as even if OpenAI decides not to renew the lease in the future, the completed data center will still hold significant asset value, thereby helping to keep overall financing costs low.
It is important to note that NVIDIA’s exposure to risk is carefully managed. The guarantee applies only to the completed infrastructure, and it operates through a phased risk mitigation approach: should OpenAI exit the partnership, SB Energy must first rent the facility back at its original price before attempting to sell it. NVIDIA will only cover any shortfall between the selling price and the facility’s actual value, with a maximum coverage amount of approximately $10.5 billion for the first phase.
This transaction represents the latest development in the ongoing competition among AI companies to secure access to powerful computing resources. In recent years, chip leaders such as NVIDIA and Google have increasingly leveraged their financial strength to support startups like OpenAI and Anthropic. This approach enables developers to obtain financing based on lease agreements while keeping their own risk levels under control. After several weeks of negotiations, the deal was finalized on Monday, with the three parties also adjusting the scale of NVIDIA’s guarantee to address concerns related to its potential risk exposure.
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