Nvidia Backs OpenAI's $105 Billion Data Center Leases

Nvidia has guaranteed up to $105 billion of OpenAI's data center leases, shifting its support from equity investment to credit backing. The chipmaker previously invested $30 billion in OpenAI. The guarantee covers leases for the first 4.25 gigawatts of an 8-gigawatt Ohio campus built by SB Energy, which will lease to OpenAI for 20 years. Nvidia pays only if OpenAI defaults or stops paying rent, with reimbursement promised. Nvidia's $105 billion cap exceeds its $80.5 billion in cash and securities, but strong revenue of $81.6 billion in the fiscal first quarter supports the risk. The deal expires when OpenAI achieves a satisfactory credit rating.