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Nvidia agreed Monday to guarantee up to $105 billion, backing an OpenAI lease at the PORTS-Pike Technology Campus in southern Ohio. The backstop secures the value of completed facilities that SB Energy will lease to OpenAI and gives Nvidia exclusive rights to supply the site's AI computing systems. Nvidia cut the cap to less than half the roughly $250 billion it discussed guaranteeing in late July after its shares fell and investors objected to the exposure.
What Changed
- Nvidia agreed Monday to guarantee up to $105 billion behind OpenAI's 20-year lease at SB Energy's PORTS-Pike campus in southern Ohio, less than half the roughly $250 billion it discussed guaranteeing in late July.
- The backstop covers the value of completed data centers rather than OpenAI's rent payments. If OpenAI walks away, SB Energy must first re-lease the site at the same price, then try to sell it, and only then does Nvidia pay the difference up to the cap.
- Nvidia will also invest $1.5 billion in SB Energy, supply all AI computing infrastructure at the site, and has discussed financing OpenAI's purchase of its chips for the same campus.
- The first phase covers 4.25 gigawatts of computing capacity with an option on a further 3.75 gigawatts, and the first 800 megawatts are expected in 2028.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
The structure
SB Energy, majority owned by SoftBank Group, will build, own and operate the campus under the 20-year lease announced Aug. 17. OpenAI begins paying only as capacity becomes available.
Under the agreement, the first phase covers 4.25 gigawatts of computing capacity, with an Nvidia option on the remaining 3.75 gigawatts. If OpenAI walks away, SB Energy must first try to lease the site to another customer at the same price. If that fails, it must try to sell the facilities. Nvidia would then pay the difference between the sale value and the guaranteed minimum, subject to the cap.
The guarantee covers completed data centers, not facilities under construction. Nvidia describes its backing as defined portions of lease and power payments plus a minimum site value, but does not specify the portions or the minimum.
Nvidia shares fell 5% in late July after the discussions became public. In recent days, OpenAI, SB Energy and Nvidia reworked the scale of the backstop to address investors' concerns about Nvidia's exposure.
The site
The planned campus would give OpenAI roughly 8 gigawatts of capacity, with the first 800 megawatts expected in 2028. One gigawatt can power roughly 750,000 U.S. homes. The site occupies private land and remediated federal land at the former Portsmouth Gaseous Diffusion Plant, which processed uranium for nuclear arms and commercial reactors from 1954 until 2001.
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Its planned natural-gas plant is expected to cost $33 billion, after construction costs for such plants rose 66% during the two years through August 2026. The 9.2-gigawatt plant is owned by the U.S. government and financed by Japan under the 2025 trade and investment deal. Development of the full project depends on infrastructure, permits, environmental reviews and financing being in place. The companies project 35,000 construction jobs during a six-year buildout through 2032 and 2,500 permanent operating jobs afterward.
The circularity question
Nvidia's chief executive, Jensen Huang, said Monday that the initial 4.25-gigawatt phase could generate as much as $200 billion in Nvidia revenue. Alongside its guarantee of the buildings' value, Nvidia will invest $1.5 billion in SB Energy under the Aug. 17 agreement and supply all the AI computing infrastructure at the site. The company has also discussed financing OpenAI's purchases of its chips for the campus.
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Nine technology companies, including Alphabet, Meta, Microsoft and Nvidia, hold roughly $3 trillion in mostly AI-related obligations that do not appear on their balance sheets. Leases that had not started totaled $1.2 trillion, four times the level a year earlier. Alphabet's purchase commitments jumped from $332 billion to $811 billion within three months. Morgan Stanley analysts warned that investors can barely determine the companies' actual debt.
Huang rejected the criticism. "Is this circular financing? No. OpenAI will pay the lease," he said.
Danni Hewson, head of financial analysis at AJ Bell, took the other side. "Investors are right to be worried about what seems to be a never-ending loop of AI deals but realistically the field of players isn't all that vast and there was always going to be a degree of circular financing," she said. "The biggest test is whether these investments ultimately generate decent returns for all those laying out cash and that's something that can only be figured out further down the line."
Frequently Asked Questions
How much is Nvidia actually guaranteeing?
Up to $105 billion, disclosed Monday. That is less than half the roughly $250 billion Nvidia discussed guaranteeing in late July. Nvidia shares fell 5% in late July after those discussions became public, and OpenAI, SB Energy and Nvidia reworked the scale of the backstop in the days before signing to address investors' concerns about the exposure.
What does the guarantee actually cover?
The value of completed data centers, not facilities under construction and not OpenAI's ongoing lease payments. If OpenAI walked away, SB Energy would first try to lease the site to another customer at the same price, then try to sell the facilities. Only then would Nvidia pay the difference between the sale value and the guaranteed minimum, subject to the cap.
How big is the Ohio campus?
OpenAI has secured roughly 8 gigawatts of computing capacity under a 20-year lease. The first 800 megawatts are expected in 2028. One gigawatt can power roughly 750,000 U.S. homes. The site sits on private land and remediated federal land at the former Portsmouth Gaseous Diffusion Plant, which processed uranium for nuclear arms and commercial reactors from 1954 until 2001.
Who pays for the power?
The campus depends on a 9.2-gigawatt natural gas plant owned by the U.S. government and financed by Japan under the 2025 trade and investment deal. The plant is expected to cost $33 billion, after construction costs for such plants rose 66% during the two years through August 2026.
Why do investors call this circular financing?
Nvidia guarantees the value of the buildings, is investing $1.5 billion in the developer, supplies all the AI compute at the site, and has discussed financing OpenAI's purchase of its chips there. Nvidia chief executive Jensen Huang rejected the label, saying OpenAI will pay the lease. Danni Hewson of AJ Bell said investors are right to worry about what looks like a never-ending loop of AI deals.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: editor@implicator.ai
