Nvidia reduces $250 billion OpenAI data center commitment: WSJ

Nvidia has reduced its previously announced $250 billion financial guarantee for OpenAI's data center projects, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The revised commitment remains substantial but falls short of the initial pledge, reflecting a broader industry adjustment to elevated construction and financing costs. OpenAI had sought the guarantee to accelerate its infrastructure buildout, aiming to support surging demand for artificial intelligence services.

The scaled-back arrangement underscores challenges in scaling AI infrastructure amid rising capital expenditures and tightening financial conditions. Nvidia, a key supplier of AI chips, has not publicly commented on the adjustment. OpenAI declined to provide details on the revised terms.

The original $250 billion figure, announced in late 2024, was intended to cover a portion of OpenAI's planned data center expansions over several years. Analysts have noted that while AI demand remains robust, the economics of large-scale data center development have become less favorable due to higher interest rates and construction costs.

The development follows reports of delays in OpenAI's data center timelines, as the company balances rapid growth with financial prudence. Industry observers suggest the adjustment may signal a more cautious approach to long-term commitments in the AI infrastructure sector.

Nvidia's role in the arrangement highlights its central position in the AI ecosystem, though the company has not disclosed whether the reduced guarantee will impact its chip supply agreements with OpenAI.