Nvidia is reportedly providing or guaranteeing up to $250 billion in financing for OpenAI's planned megacampus in Ohio, featuring 10+ gigawatt capacity (Stargate project).

Nvidia is in early talks to provide up to $250 billion in financing guarantees to help OpenAI lease computing capacity from a planned $500 billion, 10-gigawatt data center facility in Ohio, according to Bloomberg. The SoftBank-led project, located in southern Ohio, would support 10 gigawatts of computing capacity—roughly equivalent to the output of 10 large nuclear reactors when fully built. The first 800-megawatt phase is targeted for 2028, positioning the facility among the world's largest AI infrastructure hubs.

The potential financing backstop would enable SoftBank to secure funding while simultaneously supporting future demand for Nvidia's chips, further highlighting what investors describe as the circular nature of the AI boom. Negotiations between Nvidia and OpenAI remain ongoing and could change at any time, sources said.

Investor concerns about circular financing have intensified as the AI sector experiences explosive growth. Gary Tan, portfolio manager at Allspring Global Investments, observed: "While Nvidia's investments and partnerships reinforce confidence in long-term AI buildouts, investors remain concerned about circular financing."

Last month, the Bank for International Settlements issued a cautionary assessment, warning that "a disappointment in returns could trigger a sudden pullback in financing and turn the capex boom into a protracted investment bust, with potential knock-on effects on financial conditions." The report added that "a major equity-market correction could have larger macroeconomic consequences today than in the past."

Market participants are intensely focused on this week's Big Tech earnings reports for signals regarding AI capital spending trajectories and, critically, whether these investments are beginning to generate adequate returns. Given the heavy concentration of AI stocks driving major equity indexes higher, the results could prove decisive for the market's next significant move.