Nvidia in Talks to Back OpenAI's $500 Billion Data Center Lease

Nvidia is in early-stage discussions to provide a financing guarantee of up to $250 billion to help OpenAI lease a $500 billion, 10-gigawatt data center project in southern Ohio, according to a report from The Wall Street Journal. The project, being developed by a unit of SoftBank, is planned for 2028 and underscores how the world's most valuable chipmaker is funneling capital into the infrastructure that drives its own business.

The talks, which are still in early stages and could collapse or change, would see Nvidia backstop OpenAI's lease of computing capacity from the massive hub. The power for the project is controlled by the U.S. government and funded separately by Japan under a recent trade deal, with U.S. Commerce Secretary Howard Lutnick involved in deciding who will receive access.

Oracle Stock Jumps on the News

Oracle Corp., a key cloud provider for OpenAI, saw its stock rise 1.4% in overnight trading late Sunday and became the most-discussed ticker among retail traders on Stocktwits after the report. The move comes as Oracle shares have faced significant pressure in recent months, down 54% from their 2026 high on June 1 and 65% from their peak last September, making its valuation increasingly attractive to some investors.

OpenAI is one of Oracle's largest new customers, making the potential development a major tailwind for both companies. Oracle has taken on mounting debt to build out data center capacity, much of it to support cloud contracts with OpenAI. The Nvidia guarantee could help de-risk that expansion.

AI Infrastructure Race Intensifies

The talks highlight Nvidia's growing influence beyond chip design. By providing a financing guarantee, Nvidia would effectively help secure the computing capacity that runs its own GPUs—creating a virtuous cycle where Nvidia's capital helps build the infrastructure that consumes its products. This is a pattern we've seen before in the AI boom, but the scale here is unprecedented.

The $500 billion price tag for the Ohio hub is roughly the size of the entire global data center market just a few years ago. A 10-gigawatt facility would consume enough electricity to power millions of homes, making it one of the largest energy consumers in the world. The involvement of the U.S. government and Japan's trade deal adds a geopolitical dimension, with Commerce Secretary Lutnick's role in access decisions signaling that this is not just a commercial project.

What This Means for the AI Infrastructure Race

The deal, if completed, would represent a major escalation in the AI infrastructure arms race. OpenAI, which has been aggressively expanding its computing capacity to train and run increasingly large models, would gain access to a dedicated facility that could support its next-generation systems. Nvidia, meanwhile, would secure a guaranteed customer for its chips and deepen its relationship with the leading AI lab.

For SoftBank, the project represents a massive bet on AI infrastructure, one that could reshape the data center landscape. The Japanese conglomerate has been investing heavily in AI through its Vision Fund, and the Ohio hub would be its largest single project to date.

The talks also raise questions about the future of data center financing. With Nvidia effectively acting as a guarantor, it could set a precedent for other chipmakers to back infrastructure projects, potentially accelerating the buildout of AI capacity. However, the risks are significant: a $250 billion guarantee is a large exposure for any company, even one with Nvidia's market cap.

Market Implications

Oracle's stock movement suggests that investors see the potential deal as a positive for the company, which has been under pressure from its debt load. The 1.4% overnight gain is modest, but the surge in retail trader interest on Stocktwits indicates that the narrative is resonating with individual investors.

For Nvidia, the talks reinforce its position as the central player in the AI ecosystem. The company's ability to provide financing guarantees at this scale is a testament to its financial strength and its strategic importance to the AI industry. However, the early-stage nature of the negotiations means that nothing is guaranteed, and the terms could change significantly.

As the AI infrastructure race heats up, the Ohio project could become a template for future collaborations between chipmakers, cloud providers, and AI labs. The involvement of government and international trade deals adds a layer of complexity that will be closely watched by investors and policymakers alike.

Read the original WSJ report