![\"Nvidia](\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/08\/rcv.YNA.20260817.PRU20260817273701009_P1.jpg\"\/ "\\"Nvidia")
Nvidia and OpenAI logos. Reuters\/Yonhap News<\/p>\nNvidia and OpenAI logos. Reuters\/Yonhap News<\/p>\n
[[B1]] SILICON VALLEY \u2014 Nvidia has cut the guarantee it will provide for OpenAI’s long-term leased data center to $105 billion, about half of earlier estimates, but concerns persist. Chief Executive Jensen Huang pushed back, calling it an effort to secure infrastructure to support long-term demand, yet investors remain uneasy.<\/p>\n
[[B2]] OpenAI, the developer of ChatGPT, said on the 17th that it had signed a deal with SB Energy and Nvidia to secure 8 gigawatts of infrastructure at the “Potts Pike” data center campus in Pike County, Ohio. Under the arrangement, SB Energy builds the data center and OpenAI leases it for 20 years. Of the 8GW, 800 megawatts of computing capacity will begin operating around 2028.<\/p>\n
[[B3]] The Potts Pike data center is a flagship project led by the administration of U.S. President Donald Trump and SoftBank, the parent company of SB Energy, and will be built out to 10GW, the largest in the world. One gigawatt is equivalent to a single nuclear reactor, enough to power 750,000 to 1 million households.<\/p>\n
[[B4]] The part of the deal drawing the most attention is the “residual value guaranties” agreement between Nvidia and SB Energy. Nvidia will guarantee up to $105 billion (about 149 trillion won) of the value of the data center that SB Energy is building. Nvidia will provide credit support to SB Energy in return for exclusively supplying its AI chips, and the guarantee will shrink as OpenAI pays its rent. If OpenAI withdraws or fails to pay rent, SB Energy will find a new tenant or resell the facility, with Nvidia bearing 25% of any losses that remain. Early in the deal, projections had put the potential guarantee at up to $250 billion, so the figure has been sharply reduced.<\/p>\n
[[B5]] The $105 billion applies to the initial 4.25GW phase of the project, and additional support could follow for the remaining 3.75GW. Nvidia stressed that “a 4.25GW AI factory could correspond to about 1.5 million Nvidia GPUs, or $150 billion to $200 billion in Nvidia revenue,” and said that combined with chips already agreed to be purchased, it could generate about $600 billion in revenue for Nvidia through 2030. Separately from the guarantee, Nvidia will also invest $1.5 billion in SB Energy.<\/p>\n
[[B6]] Whenever Nvidia has invested in private AI developers such as OpenAI and Anthropic, or in cloud companies such as Nebius, controversy over circular financing has flared. The structure had companies borrowing Nvidia’s money, using Nvidia’s chips, and channeling the resulting revenue back to Nvidia.<\/p>\n
[[B7]] Apparently mindful of the controversy, Huang rebutted the circular-financing criticism in a blog post. Asked whether it was circular financing, Huang said it was not and that OpenAI would pay the rent. Huang added that the arrangement uses economies of scale and long-term demand forecasts to secure Nvidia’s computing resources, and that Nvidia commits core resources when it can accurately predict customer demand and lock in long-term production capacity.<\/p>\n
[[B8]] Some observers argue the circular-financing debate could resurface because, even without directly funding the deal, Nvidia is spurring chip sales. Following Nvidia’s announcement, the stock closed flat that day.<\/p>\n
[[B9]] Jeffrey Gundlach, chief executive of DoubleLine Capital and known as the “new bond king,” wrote on his X account, formerly Twitter, on the 15th that assets with uncertain lifespans, referring to AI chips, cannot serve as collateral for long-term debt. He added a jab, comparing the use of AI chips as collateral to issuing 30-year asset-backed securities against a warehouse of bananas.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia and OpenAI logos. Reuters\/Yonhap News [[B1]] SILICON VALLEY \u2014 Nvidia has cut the guarantee it will provide…\n","protected":false},"author":2,"featured_media":123635,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[56107,11825,2295,6226,63954,63952,63953,112],"class_list":["post-123634","post","type-post","status-publish","format-standard","has-post-thumbnail","category-seoul","tag-circular-financing","tag-jensen-huang","tag-nvidia","tag-openai","tag-potts-pike-data-center","tag-residual-value-guarantee","tag-sb-energy","tag-seoul"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/123634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=123634"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/123634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/123635"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=123634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=123634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=123634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}