Nvidia halves its guarantee for OpenAI from 250 to under 120 billion dollars

The short version

• Nvidia is cutting its financing guarantee for the OpenAI data centre in Ohio from around 250 billion dollars to less than 120 billion dollars.
• Only the first build phase of around five gigawatts is covered, while the full project is designed for ten gigawatts and over 500 billion dollars.
• With six financial institutions Nvidia wants to mobilise more than 500 billion dollars, with its own cover capped at 125 billion dollars.

Nvidia has sharply scaled back its planned financing guarantee for an OpenAI data centre in Ohio. Instead of the roughly 250 billion dollars first negotiated, the chip group will initially cover less than 120 billion dollars, according to the Wall Street Journal.

The two companies are close to an agreement. Reports suggested a signing was already possible over the past weekend.

The reason for the cut lies with investors. They had raised concerns about the size of the pledge, because Nvidia would be putting a substantial part of its own balance sheet to work in order to drive demand for its own chips. When the volume of 250 billion dollars first became known, the Nvidia share fell by five percent.

Cover only for the first build phase

The new arrangement means Nvidia covers only the first phase of the project. That phase comprises around five gigawatts of capacity. Financing for the later stages is to be decided later.

The full project is designed for ten gigawatts. Total costs were estimated in an earlier Wall Street Journal report at more than 500 billion dollars, including the cost of the Nvidia chips.

Ohio is part of a larger effort by OpenAI to secure additional computing capacity. The company is currently valued at around 852 billion dollars but is not yet profitable.

Nvidia is also reported to be examining a separate investment of up to three billion dollars in the energy supplier SB Energy, which is part of the Ohio arrangement. That detail so far comes from a single source and is not independently confirmed.

A new model with six financial houses

Despite the cut, the expansion plans remain large. On 10 August Nvidia announced a collaboration with six financial institutions, among them Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. The aim is to mobilise more than 500 billion dollars to build data centre capacity.

Final agreements are not yet in place. The framework provides that Nvidia covers up to 250 percent of the transactions, but no more than 125 billion dollars. Goldman Sachs is courting American insurers, asset managers and banks to take part.

Stakes have lost considerable value

In parallel Nvidia has revalued its portfolio of holdings. At the end of the second quarter the group held 122.8 million SpaceX shares. At the time of the listing in June that equalled a value of about 21 billion dollars. At a price of 140 dollars on 14 August the stake is put at about 17.2 billion dollars. SpaceX relies exclusively on Nvidia chips for its computing capacity.

The Intel stake, which came out of a five billion dollar investment in September 2025, has also lost value. At the end of the second quarter it was valued at 30 billion dollars, and currently the value stands at about 22 billion dollars.

Its position in the chip designer Arm, by contrast, Nvidia has sold in full.

The cut shows how the financing models behind the data centre build out are shifting. Chipmakers, technology groups and financial houses are looking for ways to meet the capital need without a single company carrying the entire risk.

Frequently asked questions

Why has Nvidia cut its guarantee for OpenAI

Nvidia is reducing the cover for the Ohio data centre from around 250 billion dollars to initially less than 120 billion dollars. Investors had raised concerns about the size of the pledge, because the group would be using a substantial part of its own balance sheet to drive demand for its own chips. When the 250 billion dollar figure first became known, the share fell by five percent.

How large is the Ohio data centre

The full project is designed for ten gigawatts, of which Nvidia initially covers only the first phase of around five gigawatts. Total costs were estimated in an earlier report at more than 500 billion dollars, including the cost of the Nvidia chips. Financing for the later stages is to be decided later.

What role do the six financial houses play

On 10 August Nvidia announced a collaboration with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. The aim is to mobilise more than 500 billion dollars for data centre capacity. Nvidia is to cover up to 250 percent of the transactions, but no more than 125 billion dollars.

What has happened to Nvidia's holdings

The 122.8 million SpaceX shares were worth about 21 billion dollars at the listing in June and are put at around 17.2 billion dollars at a price of 140 dollars on 14 August. The Intel stake fell from 30 to about 22 billion dollars. The position in chip designer Arm has been sold in full.

This analysis is for information only and is not investment advice.