Nvidia plans $250bn push to bolster OpenAI’s infrastructure ambitions

What the report says

Al Jazeera reported that Nvidia is in discussions with OpenAI over funding guarantees tied to a major AI data centre project in Piketon, Ohio. The proposed $250bn guarantee, first reported by The Wall Street Journal, would support OpenAI’s lease of a 10-gigawatt facility being developed by SB Energy, a SoftBank subsidiary, about 68 miles south of Columbus. The broader project could exceed $500bn when equipment is included, with an initial 800 megawatts of power expected by 2028.

The guarantee would cover the lease, while chips for the centre could be worth an additional $350bn; Nvidia is also reportedly discussing that piece. Al Jazeera said the site is part of a public-private arrangement involving US Department of Energy land, and that its power supply is linked to a separate $33bn US-Japan agreement for a natural gas plant. If completed, the deal would deepen OpenAI’s move beyond renting computing capacity from companies such as Microsoft, Oracle and Amazon.

The report highlighted financial concerns around large AI infrastructure commitments. Boston College’s Aleksandar Tomic told Al Jazeera the arrangement raised questions about “circular financing,” because AI firms receiving investment from infrastructure and chip suppliers may then use that capital to buy those same suppliers’ services. Investor Michael Monaghan offered a more benign interpretation, arguing such flows can also reflect normal economic activity. Nvidia shares were reported down 4.9 percent in midday trading Monday, though still far higher over a five-year span.

The plan comes as data centres face growing political resistance over power use, local control and tax incentives. Al Jazeera cited New York’s one-year moratorium on new construction and proposals or disputes in Utah and Texas. Neither Nvidia nor OpenAI responded to Al Jazeera’s request for comment.