Nvidia Backs OpenAI’s Data Center Leases with $105 Billion Guarantee
Nvidia has filed a document detailing a residual value guarantee supporting OpenAI’s data center leases in Pike County, Ohio, with a cap of $105 billion. This agreement, dated August 17, 2023, means Nvidia will only pay if OpenAI defaults on a lease or stops paying rent, and must be reimbursed by OpenAI for any amount paid. The guarantees can be terminated early if OpenAI achieves a satisfactory credit rating.
The Ohio campus, being developed by SB Energy and expected to have an 8 GW compute load, will host Nvidia’s technology exclusively. Nvidia’s obligations will not take effect until the site’s commissioning begins in 2028. Currently, Nvidia has over $50 billion in cash and marketable securities to cover its financial commitments.
Nvidia’s recent quarterly revenue was $81.6 billion, marking an 85% increase year-over-year, which positions the company well to support OpenAI unless failures occur within the latter’s operational framework.
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