Nvidia plans $250bn push to bolster OpenAI’s infrastructure ambitions
Summary
Nvidia is negotiating a $250 billion deal to support OpenAI’s plan to lease and build a large AI data center in Ohio. This data center will use Nvidia’s chips and is expected to operate with a huge power supply by 2028, helping OpenAI move from renting to owning infrastructure for its AI work.Key Facts
- Nvidia and OpenAI are in talks about a $250 billion funding guarantee for a data center project in Piketon, Ohio.
- The data center could cost over $500 billion including the chips inside, and aims to deliver 800 megawatts of power by 2028.
- The power will come from a $33 billion US government and Japan deal for a natural gas plant.
- Nvidia may also fund the $350 billion worth of chips required inside the data center.
- OpenAI currently rents data center space from companies like Amazon, Oracle, and Microsoft but plans to build its own facilities.
- The Ohio location is part of a public-private partnership led by the US Department of Energy and SoftBank’s SB Energy.
- Analysts have raised concerns about the financing, suggesting AI companies receive funding from chip and cloud providers while also buying services from them, causing circular financial flows.
- OpenAI is heavily backed by Microsoft and plans large purchases of cloud services, with Nvidia also pledging hundreds of billions in investments to develop data centers using its chips.
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