OpenAI Nvidia backstop talks could support $250 billion in AI financing
CNBC says OpenAI and Nvidia are discussing a credit backstop tied to a planned 10-gigawatt AI data center campus in Ohio.
By Theo Nakamura · Staff Writer
· 3 min read
OpenAI Nvidia backstop talks have become the latest sign of how much money the AI buildout may require. CNBC reported that OpenAI is discussing a financing support arrangement of up to $250 billion with Nvidia, a structure that could help fund a planned AI data center lease in Ohio.
For retail investors, the key point is less about one data center and more about the scale of capital now tied to artificial intelligence. AI companies need data centers packed with chips to train and run models, while chipmakers such as Nvidia depend on that demand turning into real infrastructure spending.
CNBC said the proposed backstop would help OpenAI raise debt for a 10-gigawatt data center campus in Pike County, Ohio, citing a person familiar with the discussions who was not named because the details are confidential. A backstop is a financial guarantee or support commitment that can make lenders more comfortable providing money.
According to CNBC, the arrangement under discussion would rely on Nvidia’s credit strength. The person said the guarantee would apply to lease and construction debt, while financing for Nvidia chips inside the facility is being discussed separately.
Nvidia declined to comment to CNBC. The Wall Street Journal first reported the talks over the potential $250 billion backstop.
What is the OpenAI Nvidia backstop for?
The backstop is meant to support financing for a large AI data center campus that OpenAI would lease, according to CNBC. If completed, the structure could help OpenAI borrow against Nvidia’s credit profile rather than depending only on OpenAI’s own balance sheet and private-market backing.
The Ohio site previously operated as a uranium-enrichment plant, CNBC reported, citing a person familiar with the matter. CNBC also said the full campus could cost more than $500 billion, according to that person.
The project’s power requirement shows why AI infrastructure has become a major market issue. CNBC said a gigawatt measures power, and that 10 gigawatts is about equal to the annual electricity use of 8 million U.S. households, based on its analysis of Energy Information Administration data.
The talks over both the location and financing are still active and could change, CNBC reported, citing another person familiar with the plans who was not named because the matter is confidential.
How this fits into OpenAI’s AI buildout
OpenAI set off the current AI race with ChatGPT in 2022 and has been trying to secure enough computing capacity to support its models and products, CNBC reported. It faces competition from Anthropic, Google, Amazon and Meta, which are also spending heavily on AI infrastructure.
Nvidia and OpenAI have already been linked through earlier financing and infrastructure plans. CNBC reported that Nvidia said in September it would invest up to $100 billion in OpenAI as part of a strategic partnership involving at least 10 gigawatts of Nvidia systems. That investment did not materialize, according to CNBC, though Nvidia later contributed $30 billion to OpenAI’s funding round that closed in March.
CNBC also reported that OpenAI confidentially filed for an IPO with the Securities and Exchange Commission in June, without giving an official timetable for going public. Private investors value OpenAI at nearly $1 trillion, CNBC said, as they bet on the company’s AI position and its ability to build a durable business model.
The Ohio campus is being developed by SoftBank and SB Energy in partnership with the U.S. Department of Energy, according to CNBC. SoftBank is a major OpenAI investor, and SoftBank and OpenAI announced earlier this year that they planned to invest $1 billion in SB Energy.
This story draws on original reporting from CNBC.
