Nvidia Cuts OpenAI Data Center Funding to Under $120B

Nvidia is scaling back its funding guarantee for a proposed OpenAI data center project in Ohio. The company is now expected to guarantee less than $120 billion, a reduction from the previously discussed $250 billion. This change comes after investors raised concerns about Nvidia's risk exposure from large financing commitments. Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide financial backing only for the first phase of the project. A deal could be signed as early as this weekend. OpenAI is still discussing a binding lease for the full 10-gigawatt project in Ohio. This site, being developed by SB Energy, would be the largest data center project announced to date if completed. This development matters because it reflects evolving financial strategies in the rapidly expanding AI infrastructure sector.