Nvidia explores $250B OpenAI data center guarantee

Nvidia is exploring arrangements to guarantee $250 billion for a massive OpenAI data center project in southern Ohio and potentially finance $350 billion in chip purchases by the AI company, according to reports from The Wall Street Journal and Bloomberg.

The deals would represent an unprecedented deepening of financial ties between the chip manufacturer and one of its largest customers, with Nvidia essentially using its balance sheet to enable OpenAI's infrastructure expansion. Nvidia shares fell 4.5% in morning trading Monday as investors digested the implications.

Why it matters

The arrangements highlight a growing pattern in AI infrastructure financing where chip suppliers are effectively bankrolling their own customers. This circular structure—where Nvidia invests in companies that buy Nvidia products—creates potential systemic risks if either party encounters financial difficulties. The debt market signaled concern, with credit default swaps on Nvidia bonds recording their largest intraday increase since active trading began in November.

The Ohio data center project

The southern Ohio facility is being developed by an arm of SoftBank, the Japanese technology investment firm that sold its Nvidia stake in late 2025. The site sits on a decommissioned uranium enrichment facility on federal land, giving the Commerce Department control over power supply.

A new $33 billion natural gas plant pledged by Japan will power the operation. With Nvidia's financial backing, the developer would be able to secure debt financing at more favorable terms than OpenAI could obtain independently, according to the Journal's reporting.

Nvidia's expanding AI investments

Separately, Nvidia announced Monday it will invest in and partner with Safe Superintelligence, the AI startup founded by OpenAI co-founder Ilya Sutskever. The arrangement provides public validation for the secretive company, with Nvidia noting it had gained "rare access into the company's closely guarded research."

The partnership will allow Safe Superintelligence to increase its computing capacity by an order of magnitude and collaborate on advancing Nvidia's current and future platforms, though specific financial terms were not disclosed.

The circular financing question

Nvidia's market capitalization hovers around $5 trillion, and the company operates with a 75% profit margin, giving it substantial financial firepower. However, the structure of these deals—where Nvidia finances customers who then purchase Nvidia products—creates interdependencies that concern some market observers.

The pattern reflects a broader dynamic in the AI economy: profitable chip makers are supporting cash-burning AI developers who need massive infrastructure investments to train and deploy models.

Representatives for both Nvidia and OpenAI declined to comment on the reported deals.

These details were first reported by The Wall Street Journal and Bloomberg.