Overview
- Multiple reports on Friday said Nvidia trimmed a previously discussed guarantee of about $250 billion to below $120 billion, reducing the size of the financial backstop under negotiation.
- Under the revised proposal Nvidia would backstop only the first phase of the Pike County, Ohio project and specifically cover lease payments and construction-related debt rather than the cost of its chips.
- Separately, discussions over a distinct chip-supply financing package that could be worth as much as $350 billion remain ongoing and are not included in the construction guarantee.
- The campus is planned as a 10‑gigawatt AI data center being developed by SB Energy (SoftBank), with an initial phase that could deliver roughly 800 megawatts by 2028 and require years of new power and cooling infrastructure.
- Investor pushback and concern about contingent liabilities prompted the change and coincides with Nvidia's recent memoranda with six major financial firms to mobilize over $500 billion in third‑party compute financing, raising questions about concentrated risk and circular financing between supplier, lenders, and customers.