NVIDIA commits $108.5 billion to OpenAI data center site in Ohio
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NVIDIA disclosed $108.5 billion in maximum gross exposure for land, power, and shell guarantees tied to AI cloud partners, including a 20-year lease to OpenAI at SB Energy's PORTS-Pike Technology Campus in Ohio. The commitments cover approximately 4.25 gigawatts of capacity and could generate $150 billion to $200 billion in revenue per infrastructure generation. NVIDIA says the guarantees will drop as the years pass and eventually turn into revenue.
Key Facts
- NVIDIA's maximum gross exposure for its commitments is $108.5 billion, including $3.5 billion for land, power, and shell guarantees for certain AI cloud partners' data center lease obligations in the event of default.
- The remaining guarantees provide credit support for approximately 4.25 gigawatts at SB Energy's PORTS-Pike Technology Campus in Ohio, which will host NVIDIA chips under a 20-year lease to OpenAI.
- NVIDIA estimates each generation of infrastructure deployed at PORTS-Pike could represent approximately 1.5 million NVIDIA GPUs, or $150 billion to $200 billion in NVIDIA revenue.
- NVIDIA's guarantee obligations become effective as certain conditions are met, including data centers being ready starting fiscal year 2029.
- NVIDIA can provide credit support in phases for another 3.8 gigawatts if the site scales up operations, though the dollar amount of that additional support was not disclosed.
Guarantee Structure
NVIDIA disclosed the commitments in its second quarter fiscal 2027 earnings release, citing extraordinary demand for AI infrastructure among AI clouds and model makers. The company said many customers are growing faster than their balance sheets and long-term credit profiles can support, prompting NVIDIA to enter arrangements that help select customers secure data center buildout sites. The maximum gross exposure of $108.5 billion includes $3.5 billion for land, power, and shell guarantees for certain AI cloud partners' data center lease obligations in the event of their default. The remainder provides credit support on the land, power, and shell buildout to secure approximately 4.25 gigawatts at SB Energy's PORTS-Pike Technology Campus in Ohio. NVIDIA's guarantee obligations become effective as certain conditions are met, including data centers being ready starting fiscal year 2029.
OpenAI Lease and Revenue Potential
The PORTS-Pike facility will host NVIDIA's chips under a 20-year lease made to OpenAI. NVIDIA said each generation of infrastructure deployed at PORTS-Pike could represent approximately 1.5 million NVIDIA GPUs, or approximately $150 billion to $200 billion in NVIDIA revenue. Over 20 years, NVIDIA expects the site can support multiple infrastructure upgrade cycles. NVIDIA can also provide credit support in phases for another 3.8 gigawatts should the site scale up its operations, though the dollar amount of the additional support was not disclosed.
Criticism and Company Response
NVIDIA's guarantees and agreements with its customers have caused considerable debate, with detractors accusing the firm of relying on circular financing to create a safety net for its customers. The nature of these investments has attracted criticism, as NVIDIA's detractors call them circular financing to prop up demand for its products. NVIDIA counters that the arrangements are necessary to help scale AI technologies. The company said its project guarantees will drop as the years pass and eventually turn into revenue.
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NVIDIA commits $108.5 billion to OpenAI data center site in Ohio
