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Nvidia's $250B Ohio AI Deal Triggers Share Slide

7/28/2026

Summary

Nvidia Funds AI

Nvidia is discussing a financing guarantee of up to $250 billion for OpenAI to lease computing from a $500 billion, 10-GW data-center hub in Ohio.
Nvidia is investing $1 billion in South Korea internet firm Naver Corp. to finance an AI data center under construction.
Nvidia is partnering with SK Group to build over 2 GW of AI data centers in South Korea and to work with SK Hynix on high-bandwidth memory.

Summary

Lutnick Allocates Power

Commerce Secretary Howard Lutnick will decide which firms receive electricity for the 10-GW Ohio AI campus.
The campus’s power, financed by Japan’s $33 billion natural-gas plant, will be overseen by the U.S. government, with revenue split until Japan recoups its investment, after which the U.S. keeps 90 %.
New York has imposed a one-year AI data-center moratorium while environmental groups warn the natural-gas plant and grid upgrades could raise household electricity bills.

Summary

Nvidia Shares Drop

Nvidia shares fell more than 4% on Monday after reports of a $250 billion backstop deal.
Jim Cramer warned the deal mirrors the dot-com bubble and could leave suppliers with heavy losses.
Analysts say the backstop could spawn a chipmaker-backed debt asset class tied to hardware deployments.
Google will double TPU capacity while Amazon expands Trainium chips, intensifying competition for OpenAI’s compute supply.

History

Historical Context

In March 2000 the Nasdaq, up about 400% since 1995, peaked at 5,048.62 and then fell 78% by October 2002. The crash erased roughly 80% of Cisco’s market value and led to tighter disclosure rules for venture-backed tech firms. Nvidia’s $250 billion financing guarantee for OpenAI’s Ohio AI campus revives the era’s huge capital bets, prompting similar oversight worries.

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Nvidia Funds AI

Nvidia is discussing a financing guarantee of up to $250 billion for OpenAI to lease computing from a $500 billion, 10-GW data-center hub in Ohio.
Nvidia is investing $1 billion in South Korea internet firm Naver Corp. to finance an AI data center under construction.
Nvidia is partnering with SK Group to build over 2 GW of AI data centers in South Korea and to work with SK Hynix on high-bandwidth memory.

1 / 4