Nvidia’s $250B guarantee for OpenAI data center raises AI capex concerns

Nvidia is in talks to provide approximately $250 billion in financing guarantees for OpenAI's planned data center campus in southern Ohio. Developed by SB Energy, a SoftBank subsidiary, the 10-gigawatt facility is located on a decommissioned uranium-enrichment site. Total costs, including chips, could exceed $500 billion, making it the world's largest data center by power capacity. This massive guarantee aims to reassure investors since OpenAI has not yet turned a profit to qualify for investment-grade lending.