Full Breakdown
Nvidia Guarantees Up to $105 Billion for OpenAI Ohio Data Center
8/18/2026, 1:45:01 AM
Core Event
On Aug 17, Nvidia announced a financing commitment of up to $105 billion to back a data center in Pike County, Ohio that will be leased by OpenAI for 20 years. Nvidia will also invest $1.5 billion in SB Energy, the SoftBank subsidiary building the facility, and will serve as the exclusive chip supplier. The guarantee covers a portion of lease and power payments rather than the full project cost.
Background & Context
Nvidia has been financing AI infrastructure to drive demand for its GPUs. Earlier this year, OpenAI and SoftBank each contributed $1 billion toward expanding data-center capacity, and Nvidia previously invested $30 billion in OpenAI. The Ohio project follows Nvidia’s partnership with six major financial institutions, including BlackRock, to launch financing platforms targeting more than $500 billion in third-party AI-infrastructure funding.
Data & Statistics
- Guarantee: up to $105 billion (covers defined lease and power payments).
- Direct investment: $1.5 billion in SB Energy.
- Facility capacity: up to 8 GW of compute power; an initial 4.25 GW (? 800 MW) is expected to be operational by 2028.
- Power equivalence: 1 GW can supply roughly 750,000 U.S. homes.
- Job creation: about 35,000 construction jobs through 2032 and 2,500 long-term operating jobs.
- Revenue projections: Nvidia estimates the Ohio site could add as much as $200 billion to its revenue, with total sales to OpenAI potentially reaching $600 billion by 2030 if 16 GW of compute are sold.
Official Statements & Responses
Jensen Huang emphasized that OpenAI will pay the lease and that the financing does not constitute circular funding.
Criticism & Opposition
Analyst Danni Hewson of AJ Bell warned that “investors are right to be worried about what seems to be a never-ending loop of AI deals.” Energy-policy observers have raised concerns about the massive electricity demand and possible impacts on regional power prices.
Conflicting Reports & Gaps
Revenue estimates differ: Reuters cites a potential $200 billion contribution from the Ohio site, while a later Reuters statement projects $600 billion in total OpenAI-related revenue for Nvidia by 2030. The New York Times mentions an overall project cost up to $500 billion, a figure not echoed elsewhere. The exact proportion of the guarantee that will be triggered if OpenAI defaults remains unclear.
Verbatim Quotes
- “We are securing long-lived infrastructure for Nvidia compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics,” — Jensen Huang, Nvidia CEO
- “The biggest test is whether these investments ultimately generate decent returns for all those laying out cash and that’s something that can only be figured out further down the line.” — Jensen Huang, Nvidia CEO
What’s Next
The first 800 MW of compute capacity is slated to become available by 2028, with full construction expected to conclude in 2032. Nvidia’s guarantee will remain in effect for the 20-year lease, and the company will evaluate the financial returns of its AI-infrastructure investments in the years ahead.
