OpenAI nears $500B Ohio data center with Nvidia backstop
OpenAI is negotiating a Nvidia backstop of up to $250 billion to fund a roughly 10-gigawatt, about $500 billion data center campus in Pike County, Ohio.
In Brief
- OpenAI is discussing a Nvidia backstop of up to $250 billion to fund a 10-gigawatt data center campus in Pike County, Ohio.
- The guarantee would let OpenAI raise debt on the strength of Nvidia’s credit, covering lease and construction costs but not the chips inside.
- The full Ohio campus could cost more than $500 billion and may come online through SoftBank and the U.S. Department of Energy.
OpenAI is in talks with Nvidia on a backstop of up to $250 billion to help fund a massive new AI data center, a structure that would let the lab raise debt on Nvidia’s credit. The negotiations were confirmed by CNBC and detailed in Yahoo Finance coverage.
The site in Pike County, Ohio would span 10 gigawatts of capacity, roughly the annual power draw of 8 million U.S. households, according to a CNBC analysis of federal energy data. The total build could exceed $500 billion, people familiar with the plans said.
The Wall Street Journal was first to report the $250 billion backstop talks, with CNBC later confirming and detailing them, though the people familiar cautioned that the discussions remain in progress and subject to change. Nvidia Safe Superintelligence ties show how deep the two companies’ interests already run.
OpenAI data center reaches $500B
The backstop would cover lease and construction debt for the Ohio campus, not the Nvidia chips inside, which the companies are discussing separately. SoftBank and SB Energy are developing the site with the U.S. Department of Energy, and SoftBank is a major OpenAI investor.
The Ohio location once functioned as a uranium-enrichment plant, a piece of Cold War infrastructure now repurposed for the AI race. OpenAI has been racing to secure compute as it faces competition from Anthropic, Google, Amazon, and Meta, all spending hundreds of billions on capex.
Nvidia’s entanglement with OpenAI is long-standing. In September, Nvidia said it would invest up to $100 billion in OpenAI as part of a 10-gigawatt partnership that never materialized, though it did contribute $30 billion to OpenAI’s March funding round.
Nvidia backstop de-risks debt
The guarantee effectively lends OpenAI Nvidia’s balance-sheet strength, a notable vote of confidence as OpenAI confidentially filed for an IPO with the SEC in June. CEO Jensen Huang said it “might be the last time” Nvidia invests in OpenAI before the company goes public.
OpenAI is now valued near $1 trillion by private investors betting it keeps its lead despite open-weight rivals, many from China, threatening its pricing power. OpenAI work research underscores how much compute demand is riding on the bet.
The deal is not done. People familiar with the discussions said the site and its financing are still moving, and the terms could shift before any commitment is signed.
FAQ
How big is the OpenAI data center in Ohio?
The proposed Pike County campus would span 10 gigawatts of capacity, about the annual power use of 8 million U.S. households, and could cost more than $500 billion.
What does the Nvidia backstop cover?
The up-to-$250 billion backstop would cover lease and construction debt on Nvidia’s credit, but not the chips inside the data center, which are discussed separately.
Is the OpenAI-Nvidia deal finalized?
No. People familiar with the talks say the site and its financing are still in progress and subject to change before any commitment.
