Nvidia is reportedly discussing a $250 billion financing guarantee linked to a 10GW data centre project that OpenAI is considering leasing in Ohio. The proposed arrangement would extend Nvidia’s role beyond supplying computing and networking equipment by adding financial support for the infrastructure project.

The facility would be developed by SB Energy, a SoftBank subsidiary, at the Portsmouth Site in Pike County, according to The Wall Street Journal. OpenAI has been in advanced discussions for several weeks to become the main tenant.

The proposed guarantee would be a financial backstop rather than a direct $250 billion investment. It would reportedly support obligations connected to OpenAI’s lease and the project’s debt financing, giving lenders additional protection if the development proceeds.

The project is expected to cost more than $500 billion, including the computing hardware installed inside the facility. The first phase is expected to deliver around 800MW in 2028, while the wider Portsmouth Technology Campus is planned to include 10GW of data centre capacity supported by 10GW of new power generation.

The Department of Energy said the energy plan includes at least 9.2GW of natural gas generation. Nvidia’s proposed guarantee would not cover the GPUs used at the site, although the chipmaker is also discussing separate financing of up to $350 billion for OpenAI’s hardware purchases, the Journal reported.

The financing support would be arranged through vehicles intended to reassure lenders about the project’s funding. The terms remain under discussion, and Reuters said it could not independently verify the Journal’s report.

Nvidia’s backing is intended to provide additional support for OpenAI’s lease obligations. OpenAI remains unprofitable and does not have an investment-grade credit rating, increasing scrutiny of how it would finance commitments associated with the project.

The development also requires power and transmission infrastructure beyond the data centre buildings and computing equipment. SB Energy and AEP Ohio plan to invest $4.2 billion in new and upgraded high-voltage transmission infrastructure, including 765kV lines and four substations, the Department of Energy said.

The Information reported in June that OpenAI had discussed a potential 20-year lease under which it would control the equipment deployed at the site. SB Energy would remain responsible for developing the campus, while Nvidia’s reported involvement would cover the proposed guarantee and separate support for hardware purchases.

The project is expected to occupy federal and privately owned land at the former Portsmouth Gaseous Diffusion Plant. The Department of Energy is leasing federal land to an SB Energy-affiliated company, while SB Energy has committed funding towards accelerated environmental cleanup and redevelopment work at the former uranium-enrichment site.

Power generation is being financed separately from the data centre lease and Nvidia’s proposed hardware arrangements. The energy plan includes $33.3 billion in Japanese funding for 9.2GW of natural gas generation under a US–Japan trade and investment agreement, the Department of Energy said.

The new generation and transmission infrastructure would connect the campus to the regional grid. The Department of Energy said SB Energy and AEP Ohio would fund the transmission work rather than passing those costs to local ratepayers.

The Journal reported that the US government is involved in decisions over access to the project’s power supply. US Commerce Secretary Howard Lutnick is involved in those discussions, while Anthropic, Microsoft, and Google have also spoken to him about the site in recent weeks, according to the report.

OpenAI’s participation would expand its efforts to secure more direct control over large-scale computing infrastructure. The company currently obtains capacity through agreements with Microsoft, Amazon, and Oracle, while the Ohio project would add a long-term lease for dedicated facilities.

Under the proposed arrangement, OpenAI would control the equipment deployed at the site, while SB Energy would develop and operate the campus infrastructure. The lease would sit alongside OpenAI’s existing cloud agreements rather than necessarily replacing them.

OpenAI and Amazon announced a partnership in February covering 2GW of AWS Trainium capacity. The company also has infrastructure commitments involving Microsoft and Oracle, including capacity developed through the Stargate programme.

Nvidia already supplies computing systems and networking equipment used in large AI clusters. The proposed guarantee would add a financing role to that commercial relationship and link Nvidia more closely to a project expected to purchase its hardware.

The arrangement has drawn scrutiny because Nvidia would support financing for infrastructure that could become a major customer for its products. Reuters Breakingviews said the proposed guarantee would expose Nvidia to credit risk linked to OpenAI’s ability to meet its infrastructure commitments.

The size and conditions of Nvidia’s potential liability have not been disclosed. The Journal reported that technology companies’ spending on AI infrastructure is expected to exceed $700 billion this year.

(Photo by Scott Rodgerson)

See also: Data centre delays expose AI cloud power limits

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