Nvidia plans $250bn push to bolster OpenAI’s infrastructure ambitions

Semiconductor manufacturer Nvidia is in advanced discussions to provide substantial financial backing for OpenAI's infrastructure expansion through a data centre project in Ohio. The arrangement involves a $250 billion guarantee covering the lease of a 10-gigawatt facility being constructed by SB Energy, a SoftBank subsidiary, in Piketon, approximately 109 kilometers south of Columbus.

The overall project scope extends significantly beyond the lease guarantee. Total development costs are projected to exceed $500 billion when accounting for semiconductor equipment, with the facility expected to deliver up to 800 megawatts of electricity by 2028—sufficient capacity to serve roughly 640,000 residences. A separate $33 billion US government agreement with Japan will provide natural gas infrastructure to power the installation. Nvidia's guarantee addresses only the lease costs; the company is separately negotiating to cover approximately $350 billion in chip expenses.

OpenAI's move toward independent infrastructure represents a strategic shift from its previous reliance on cloud services from established technology providers including Amazon, Oracle, and Microsoft. The Ohio facility would operate as a public-private partnership on land leased through the US Department of Energy, positioning it as the world's largest artificial intelligence data centre.

However, financial analysts have raised concerns about the sustainability of these arrangements. Critics note that OpenAI, valued at $852 billion, remains unprofitable while its infrastructure partners carry approximately $96 billion in combined debt. Boston College associate dean Aleksandar Tomic characterized the financing structure as circular, questioning whether genuine market demand exists or whether companies are essentially funding each other's operations to maintain chip purchases and service agreements.