Nvidia has scaled back plans for a guarantee tied to an OpenAI data center project from US$250 billion to less than US$120 billion, the Wall Street Journal reported on August 14, citing people familiar with the matter.

The change came after investors raised concerns about the potential risks associated with the guarantee.

The Journal report did not identify the project.

Separately, OpenAI’s Stargate project with Oracle and SoftBank Group is a US$500 billion US AI infrastructure effort expected to exceed 9 gigawatts by 2029, with seven US sites under development and 0.3 gigawatts already operating in Abilene, Texas.

The Journal report also did not describe Nvidia’s commitment in detail.

Legal analysts warned that large AI infrastructure commitments can involve contingent or off-balance-sheet risk.

Stargate’s expansion is under way, and related sites have also used bond, private-credit, and special-purpose vehicle financing, suggesting any Nvidia pullback would more likely change the financing mix than halt construction.

🔗 Source: Reuters

Recent Nvidia developments