Nvidia Nears $100 Billion OpenAI Data Center Deal, Invests in SB Energy

Nvidia is reportedly in advanced talks to provide about $100 billion in credit support and possibly invest up to $3 billion in SB Energy for OpenAI's planned data center in Ohio. The deal may help OpenAI secure Nvidia hardware and give SB Energy new equity, but none of the companies have confirmed details yet. Sources suggest the credit support will be less than $120 billion for the first phase, and the project might be finished in stages by 2028. These negotiations appear to reflect growing needs for financing in the AI industry and may affect how companies buy hardware and manage risks. It is still uncertain if the deal will be finalized as described.

Nvidia is in advanced negotiations for a landmark deal involving approximately $100 billion in credit support to finance a massive OpenAI data center in Ohio. The proposed package, which has moved from early rumor to serious discussion, would also see Nvidia potentially invest up to $3 billion in the project's developer, SB Energy. If finalized, the arrangement could become one of the largest examples of vendor-arranged financing in the rapidly growing AI infrastructure market.

What is the reported scale of the financing package?

Nvidia is reportedly negotiating a landmark financing deal to support OpenAI's development of a massive AI data center in Ohio. The arrangement would provide credit to OpenAI and includes a potential equity investment by Nvidia in the project's developer, SB Energy, securing a long-term hardware partnership.

According to multiple reports, the credit guarantee is around $100 billion, a figure revised down from an earlier projection of $250 billion as noted by Reuters. This support would cover OpenAI's lease obligations and hardware purchases. The deal also includes discussions for a direct equity stake where Nvidia would invest up to $3 billion in SB Energy.

Who is involved in the Ohio data center project?

The negotiations feature three key entities:

OpenAI: The AI research and deployment company, acting as the anchor tenant for the new data center.
Nvidia: The chipmaker, serving as the primary hardware supplier and strategic financing partner.
SB Energy: A SoftBank-backed renewable energy developer, leading the site development and infrastructure build-out.

The project's goal is to construct a 10-gigawatt AI data center campus in southern Ohio on a combination of federal and private land. The initial phase is expected to constitute a significant portion of the total planned capacity.

Why are vendors like Nvidia offering infrastructure financing?

This shift toward vendor-backed financing is driven by the immense capital required for modern AI infrastructure. As hyperscale data center projects expand, their costs often exceed what companies can fund through internal cash flow alone. JPMorgan estimates that capital expenditures in this sector could approach $697 billion in 2026.

By offering credit guarantees and direct investments, vendors can help customers overcome these financial hurdles. This strategy not only accelerates the adoption of their hardware but also secures long-term product commitments, positioning financing as a key competitive tool.

What are the broader implications and risks?

A deal of this magnitude carries significant market implications and involves notable risks:

Procurement Dynamics: This model could pressure competitors to offer similar financing packages to remain attractive to large-scale customers, fundamentally changing how AI hardware is procured.
Hardware Adoption: Tying credit support directly to Nvidia equipment would likely steer a substantial portion of OpenAI's server spending toward the company.
Governance and Risk: Financial analysts highlight potential risks related to transparency, leverage, and off-balance-sheet exposure if project revenues underperform.
Regulatory Hurdles: Large infrastructure projects face major oversight challenges, including securing power, navigating grid interconnection delays, and complying with evolving state-level incentive policies.

Industry observers continue to monitor whether the negotiations will be finalized in their currently reported form. As of now, the deal remains unconfirmed by Nvidia, OpenAI, or SB Energy.