Nvidia in Talks to Guarantee $250bn of OpenAI Data Centre Debt
Nvidia may guarantee $250 billion so OpenAI can afford the data centre that will house its chips.
The Reported Backstop
- This would be the largest financial guarantee ever discussed between two private companies.
- Michael Burry, who is short Nvidia, described it as “around and around we go.”
Details of the Deal
- July 27, 2026 - Source: Wall Street Journal
- The backstop would let OpenAI lease a 10-gigawatt campus in southern Ohio developed by SoftBank’s energy subsidiary.
- The guarantee covers roughly $250 billion in data centre lease and construction debt, not the cost of Nvidia chips for the building.
- A separate discussion is underway regarding chip purchase financing that could reach an additional $350 billion.
- The entire project is projected to cost over $500 billion, including silicon costs.
Why This Matters
- OpenAI lacks an investment-grade credit rating, making Nvidia’s balance sheet effectively stand in for one.
- Lenders can price the debt against Nvidia’s credit rather than OpenAI’s.
Site Political Implications
- Power for the Ohio campus is controlled by the US government and funded separately by Japan under a recent trade deal tied to Tokyo's pledge of $33 billion investment in a natural gas plant.
- Commerce Secretary Howard Lutnick plays a role in deciding who gains access.
Reactions
- Michael Burry: “Around and around we go. Nvidia to guarantee $200 billion of ChatGPT’s spending on $NVDA chips.”
- Ed Zitron, tech commentator: "Such an insane thing to do... about as bearish as it gets."
Precedent
- Vendor guarantees on data centre obligations are not new, though the scale here is.
- Google has guaranteed roughly $44 billion of other companies' data centre rent.
<|im_end|>