Nvidia Weighs a $250B Backstop for OpenAI's Ohio Data Center — Circular Financing at Its Peak

Nvidia is reportedly weighing a financial backstop of up to $250 billion so OpenAI can lease a planned 10-gigawatt data center campus in Piketon, Ohio. A separate discussion could cover as much as $350 billion in Nvidia chips, pushing the campus past $500 billion in total. Because OpenAI lacks an investment-grade credit rating, the structure leans on Nvidia's credit instead — a stark illustration of AI infrastructure's 'circular financing' risk.

On July 27, CNBC, Tom's Hardware and others reported that Nvidia is weighing a financial backstop of up to $250 billion to help OpenAI lease a 10-gigawatt (GW) data center campus planned for Piketon, Ohio. Because OpenAI lacks an investment-grade credit rating, developer SB Energy — a SoftBank energy subsidiary — would borrow against Nvidia's credit rather than OpenAI's. A separate talks could cover as much as $350 billion in Nvidia chips, and the campus could cost more than $500 billion in total. Terms remain unsettled and the deal could still collapse.

The "circular financing" that defines today's AI buildout — Nvidia sells chips to a customer, then helps fund the customer's ability to buy them — has reached a new extreme. On July 27, multiple outlets including CNBC and Tom's Hardware reported that Nvidia is weighing a backstop of up to $250 billion for OpenAI. The goal is to shore up OpenAI's credit so it can sign a 20-year lease on a giant data center campus rising in Piketon, Ohio.

Why a "backstop"?

It comes down to OpenAI's credit. The company is understood to still lack an investment-grade rating. So instead of borrowing on OpenAI's credit, SB Energy — the SoftBank subsidiary that would develop and own the campus — would raise construction financing against Nvidia's credit. If OpenAI fails to make its lease payments or service the construction debt, Nvidia steps in and covers the obligation. In effect, Nvidia would be guaranteeing OpenAI's ability to pay.

Backstop size Up to $250 billion
Chip financing (separate) Up to $350 billion
Total campus cost Estimated over $500 billion
Data center capacity 10GW (Phase 1: 800MW, targeting 2028)
Lease term 20 years (OpenAI as tenant)

What the Piketon campus is

The site is SB Energy's planned "PORTS Technology Campus," built on land that once housed a uranium enrichment plant. The plan pairs a 10GW data center with up to 10GW of new power generation, of which 9.2GW would come from natural gas. OpenAI would sign a 20-year lease and start with an 800-megawatt (MW) first phase targeted for 2028.

Item	Detail
Reported	July 27, 2026
Location	Piketon, Ohio (former uranium enrichment site)
Developer / owner	SB Energy (SoftBank energy subsidiary)
Tenant	OpenAI (20-year lease)
Power plan	Up to 10GW new generation, 9.2GW natural gas
Status	Terms unsettled, could still collapse

A "backstop" is a last-resort guarantee that absorbs losses. Here it means Nvidia would repay the debt if OpenAI cannot. For lenders, that turns the counterparty from an unrated OpenAI into one of the world's most valuable companies — making the loan far easier to underwrite.

The risk in circular financing

What draws attention isn't just the scale. Nvidia has taken an equity stake in OpenAI; OpenAI uses that capital to buy Nvidia chips; and now Nvidia would guarantee the lease on the data center that runs those chips. Money loops around Nvidia and returns as Nvidia revenue. Some read the arrangement as evidence that debt markets declined to fund a deal this size on OpenAI's credit alone — meaning the very need for a guarantee is a warning sign.

The deal also lays bare the industry's underlying bottleneck: compute (chips and power) is scarce, and the capital required to secure it has grown too large for any single company's balance sheet. Standing up one $500-billion campus now requires a chipmaker, an AI lab, and telecom and energy giants to entangle their credit with one another.

This is not a signed deal. Reports say the terms are not finalized and the talks could fall apart. The figures cited are the maximum amounts under discussion and could change in any final agreement — read them accordingly.

Nvidia is weighing a backstop of up to $250 billion for OpenAI's 10GW Ohio data center lease (reported July 27).
OpenAI lacks an investment-grade rating, so SB Energy would borrow on Nvidia's credit; Nvidia repays if OpenAI defaults.
A separate talks could cover up to $350 billion in chips — the campus may exceed $500 billion in total.
The Piketon "PORTS Campus" pairs up to 10GW of generation (9.2GW gas), with an 800MW Phase 1 targeted for 2028.
A peak of Nvidia-centered "circular financing" — terms are unsettled and the deal could still collapse.