American company Nvidia, which specializes in artificial intelligence processors, has agreed to provide a guarantee of up to USD 105 billion to help OpenAI, the developer of ChatGPT, rent a massive data center in the US state of Ohio. The site is being developed by SB Energy, an energy company affiliated with Japanese group SoftBank, while Nvidia will be the exclusive supplier of chips. The project's capacity could reach 8 gigawatts, with a lease agreement spanning 20 years and the first 800 megawatts set to become operational in 2028.

A guarantee does not mean paying the full amount
 

According to a report by Reuters, the guarantee does not cover the full cost of the project or all of OpenAI's obligations. It includes part of the rental payments and energy costs, as well as a minimum value for the site. If OpenAI defaults, Nvidia will cover the difference between the guaranteed value and what the center's owner can recover through sale or leasing. The company will also invest USD 1.5 billion in SB Energy. The final formula for financing, which will combine equity and debt, has not yet been determined.

More Chips, More Revenue

The deal gives Nvidia the opportunity to link one of the largest future computing projects to its chips for years, said CEO Jensen Huang. The Ohio site could add up to $200 billion in revenue for the company, while sales to OpenAI by 2030 could reach $600 billion. However, the agreement also reignites the debate over financing facilities that will purchase its products, especially as the project requires new power plants and investments worth $4.2 billion in the regional energy grid.