Nvidia is reportedly engaged in discussions to provide a substantial financing package, potentially up to $250 billion, for a large-scale OpenAI data center project located in Ohio. This development comes shortly after Nvidia CEO Jensen Huang publicly backed open-source artificial intelligence models, some of which are increasingly utilized in China.
The proposed data center, envisioned as a 10-gigawatt facility, could cost as much as $500 billion in total. SoftBank, through its energy subsidiary, is developing the project in southern Ohio. Nvidia's financial commitment would serve as a backstop, enabling the ChatGPT maker to secure leases for the site, according to a Wall Street Journal report. OpenAI has been in advanced negotiations for the site for several weeks, with other major tech companies like Anthropic, Microsoft, and Google also reportedly engaging in discussions regarding the project.
This potential deal has drawn attention to Nvidia's significant role in the burgeoning AI industry. Critics, including financiers like Goldman Sachs traders and investor Michael Burry, have expressed concerns about a potentially "circular" arrangement where Nvidia finances and invests in companies and projects that rely on its chips. This could create a self-reinforcing ecosystem that benefits the chip manufacturer.
Meanwhile, Huang has become a prominent voice in the debate surrounding open-source versus closed-source AI models. In a recent post on X, he co-signed a letter from the Open Secure AI Alliance, which includes other major tech firms like Microsoft, Meta, IBM, and Palantir Technologies. The alliance urged lawmakers to avoid premature restrictions on open models, arguing that such limitations could hinder competition and drive innovation abroad.
This stance places Huang and his allies in contrast to companies like Anthropic and OpenAI, which have expressed concerns about the potential misuse of open-source AI. Anthropic CEO Dario Amodei has previously described open-source AI as a "very dangerous path." Sam Altman, CEO of OpenAI, has also voiced opposition to completely open-source AI, although OpenAI has released some tools with open-source elements, referred to as open weights. Altman has previously stated that developing open-source options was necessary to prevent the world from being primarily built on Chinese models.
Huang acknowledged the risks associated with open-source models in his letter, noting that once released, their control is lost, and modified versions are difficult to trace. However, he argued that the appropriate response is not prohibition but rather developing tools to mitigate these risks. The Open Secure AI Alliance has stated its aim to develop open-source AI tools that companies can use to defend against cyberattacks.
The Ohio project is significant for its connection to a broader energy initiative. As part of a tariff agreement between Japan and the U.S., Japan committed $33 billion to establish a natural-gas power facility on federal land. This facility will be operated by SB Energy, a SoftBank-controlled entity. U.S. officials and SoftBank representatives have already broken ground on the site, which is located on former uranium-enrichment land south of Columbus.
Nvidia's involvement is crucial for SoftBank's developer, as OpenAI, being an unprofitable private company, lacks an investment-grade credit rating. Nvidia's backing would facilitate more favorable debt terms for the project. Reports also indicate that Nvidia is in separate discussions to finance chip purchases for OpenAI, a deal that could potentially amount to $350 billion, adding to an existing $30 billion investment.
The proposed mega AI campus is projected to consume approximately 10 gigawatts of electricity, a capacity sufficient to power millions of homes. The construction is expected to take several years, with the initial phase slated for completion in 2028.