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Nvidia in Talks With OpenAI to Guarantee $250 Billion Financing for Data Center
Nvidia is negotiating a $250 billion financing guarantee to help OpenAI secure capital for a massive new 10-gigawatt data center project.
What: Nvidia plans to back debt financing vehicles for a data center project being developed by SoftBank’s energy subsidiary. The project aims to power large-scale AI infrastructure, with Nvidia's financial guarantee intended to lower the cost of capital for the developers.
Why it matters: This illustrates how hardware suppliers are moving into the role of financial intermediaries to ensure their customers have the power and real estate necessary to deploy their chips.
Original article
Nvidia is in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project. The guarantee will help OpenAI lease a 10-gigawatt project that Softbank's energy subsidiary is developing. Nvidia's backing allows the data center developer to raise debt at more favorable terms. Under the deal, Nvidia would guarantee a series of financing vehicles intended to make lenders feel more confident that funding behind the project is secure.
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