Nvidia in Talks to Backstop $600B OpenAI-SoftBank Data Center Project
NVDA sits 21% above its 52-week low of $164.07.
Summary
Nvidia is negotiating to provide roughly $250 billion in financing guarantees for OpenAI as part of a massive 10-gigawatt data center project in Ohio, developed by SoftBank's SB Energy. The guarantee would cover the data center lease and debt, but not the Nvidia chips inside; separately, Nvidia is discussing financing up to $350 billion for OpenAI's chip purchases. This follows Nvidia's recent $80 billion buyback authorization and record Q1 results, highlighting its deepening role in AI infrastructure beyond chip supply. The scale of the commitment—potentially over $600 billion in total—would be unprecedented and ties Nvidia's balance sheet to the success of key customers. The first phase, delivering around 800 megawatts, is expected by 2028, with full buildout years away. While the talks signal massive demand for Nvidia's ecosystem, the financing exposure introduces new credit risk if AI spending slows.
At the time of this announcement, NVDA was trading at $197.74 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.8T. 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 9 out of 10. Source: Reuters.