Nvidia Commits $105 Billion to Back OpenAI Ohio Data Center as Circular Financing Concerns Mount

Nvidia has agreed to provide a guarantee of up to $105 billion to help OpenAI lease a massive data center in Ohio being developed by SoftBank-owned SB Energy, one of the chipmaker's largest infrastructure financing commitments. The deal covers an initial 4.25 gigawatts of computing capacity, and Nvidia will also invest $1.5 billion directly in SB Energy. The arrangement raises what Reuters described as "circular financing" questions, since Nvidia is effectively backstopping demand for the very chips it sells.

The deal comes after the Wall Street Journal had reported Nvidia would cap its guarantee below $120 billion, down from a previously discussed $250 billion figure. Separately, Amazon confirmed plans to expand its Louisiana data center investment from $12 billion to $18 billion by adding a third campus, along with up to $400 million in water infrastructure upgrades at no cost to local residents. Against this backdrop of surging AI capital expenditure, European Central Bank economists warned that AI-driven valuations are at risk of a sharp correction, arguing that history suggests prices will tumble even if current multiples fairly reflect AI's transformative potential.

Bank of America added to the cautionary tone, saying Nvidia could be trading at up to a 50% discount once AI-related risks are priced in. Rising Treasury yields weighed on AI-leveraged plays during the session, with CoreWeave falling 7% and crypto-linked AI miners Cipher Mining and TeraWulf dropping 9% and 7% respectively. On the funding side, AI chip startup Etched was valued at $21 billion in its latest round, and Anthropic is rapidly closing the gap with SpaceX for the title of 2026's largest IPO, with a potential fourth-quarter debut on the horizon after its annualized revenue run rate climbed to $65 billion in July.