Nvidia scales back its $250B OpenAI data center guarantee

The Ohio guarantee let OpenAI borrow against Nvidia's own credit rating to build a giant computing campus. Nvidia doesn't get repaid directly. It gets a customer locked in to spend that borrowed money buying Nvidia's chips. That circular structure is exactly what has investors nervous.

Nobody has explained why Nvidia scaled the number back. Neither company has confirmed the new figure. WSJ said talks are still ongoing, so it could shift again before the deal closes. One theory on Wall Street: investors are wary of AI deals that loop back on themselves. Nvidia guarantees the debt. OpenAI spends the borrowed money on Nvidia's own chips. Trimming the guarantee doesn't end that arrangement. It just leaves less of Nvidia's own balance sheet exposed if OpenAI ever can't pay.

Keep reading — what to watch

Will OpenAI's data center building spree keep pace with the money behind it? OpenAI needs the Ohio campus to run its models at real scale. That scale is part of the pitch it's making to investors ahead of a planned IPO. If backers like Nvidia keep trimming their exposure, OpenAI will need new lenders. Those lenders would take on risk Nvidia itself is stepping back from. Watch whether Nvidia's other commitments to OpenAI change too, and whether other AI financing deals start shrinking the same way.