Full Breakdown
Nvidia’s $250 B Financing Backstop for OpenAI’s Ohio AI Megacenter
7/28/2026, 7:50:45 AM
The Deal Overview
Nvidia is in advanced talks to provide a financing guarantee of up to $250 billion for OpenAI’s lease and construction debt on a 10-gigawatt AI data center in southern Ohio. The guarantee excludes the cost of Nvidia’s chips, which are being negotiated separately. Developed by SoftBank’s SB Energy, the project is projected to cost over $500 billion and will begin with an 800 MW phase slated for 2028.
Background & Context
The Ohio site sits on former federal land that housed a Cold-War uranium-enrichment plant. Power will be supplied by a natural-gas plant funded by Japan under a trade agreement earmarking $33 billion. U.S. Commerce Secretary Howard Lutnick is deciding which companies receive access to the power allocation.
OpenAI, valued at $800 billion in March, is seeking to reduce reliance on external cloud providers. The company filed confidentially for an IPO in June. Nvidia, already a $30 billion stakeholder, is also discussing a separate financing package of up to $350 billion for OpenAI’s chip purchases.
Data & Statistics
- 10 GW power capacity – enough for roughly 8 million U.S. households.
- $250 billion financing guarantee – credit backstop for lease and debt financing.
- $350 billion potential chip-purchase financing.
- $500 billion+ total project cost, including chips.
- First phase: 800 MW by 2028.
Official Statements & Responses
- SB Energy leads development; Japanese officials have pledged $33 billion for the gas plant.
- Howard Lutnick is actively involved in power-access decisions.
- OpenAI has been in “advanced talks for several weeks” to lease the site (sources).
- Anthropic, Microsoft and Google have also approached Lutnick, indicating broader industry interest.
Criticism & Opposition
Financial commentator Jim Cramer warned that the “circular financing” echoes the late-1990s dot-com bubble, noting lenders historically suffered when suppliers financed customers’ purchases. He cautioned that the risk hinges on OpenAI’s ability to generate sufficient revenue to service the debt.
Conflicting Reports & Gaps
- Verification: Reuters could not independently verify the Wall Street Journal report; other outlets flagged the information as unconfirmed.
- Cost Estimates: Sources differ between “more than $500 billion” and a round “$500 billion.”
- Scope of Guarantee: All agree the guarantee excludes chip costs, but terms for the separate chip-financing discussion vary between “up to $350 billion” and “approximately $350 billion.”
Verbatim Quotes
- “What we learned in 2000 is that you don't lend to companies who buy your goods,” — Jim Cramer
- “If the buyer, in this case, OpenAI, can actually afford to pay for these chips, perhaps because it comes public ... then Nvidia's in terrific shape,” — Jim Cramer
- “It was clear that if we didn’t do it, the world was gonna be mostly built on Chinese open-source models,” — Sam Altman
What’s Next
Negotiations remain ongoing, and the financing structure could change before any formal agreement is signed. The first phase is expected to be operational in 2028, with the full megaproject potentially extending into the mid-to-late 2030s. U.S. and Japanese officials will continue to coordinate power allocation and financing terms.
