Nvidia Backs Up to $105 Billion of OpenAI Data Center Leases in Ohio

Nvidia has guaranteed up to $105 billion of OpenAI's data center leases in Ohio, shifting its support from equity investment to credit backing. The guarantee covers leases for the first 4.25 gigawatts of an 8-gigawatt campus. The chipmaker's obligation only activates if OpenAI becomes insolvent or stops paying rent, with OpenAI agreeing to reimburse Nvidia for any disbursements. The guarantees expire after 20 years or once OpenAI achieves a satisfactory credit rating. Nvidia's CEO Jensen Huang said in March that its $30 billion investment might be the last equity purchase before OpenAI's IPO. The company reported $81.6 billion in fiscal first-quarter revenue, with the stock trading at about 33 times earnings.