Nvidia Cuts OpenAI Guarantee to Under $120B, Stock Rises
NVDA sits 38% above its 52-week low of $164.07.
Summary
Nvidia is scaling back its financial guarantee for OpenAI's Ohio data-center campus to less than $120 billion, down from $250 billion previously, according to The Wall Street Journal. The move addresses investor concerns about balance-sheet exposure, and shares rose 0.7% in premarket trading. The Ports-Pike project is expected to create 35,000 construction jobs during a six-year buildout through 2032 and 2,500 long-term operating jobs. This follows Nvidia's recent partnership with SB Energy on a separate Ohio AI campus and its broader strategy of acting as a buyer of last resort for AI hardware. The reduced commitment lowers contingent liability risk while preserving Nvidia's role in the AI infrastructure buildout.
At the time of this announcement, NVDA was trading at $226.13 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.4T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.