The chipmaker company has announced it is willing to provide financial guarantees of a maximum of $105 billion for leases related to an artificial intelligence data center campus located in Ohio. According to the documentation released on Monday, Nvidia has signed these agreements with SB Energy to cover approximately 4.25 gigawatts of computational capacity at the PORTS Technology Campus in Pike County. These guarantees will generally be triggered when the respective leases begin, provided that the sites are ready for use and that the capacities are available.

The capacity planned to start operating in 2028 represents the starting point for the implementation of Nvidia's DSX AI factory platform, but the guarantees could extend up to the twentieth anniversary of each lease. If OpenAI becomes insolvent or fails to make required payments, Nvidia's obligations could be triggered to cover any discrepancies between the minimum guaranteed value and the recovery obtained by selling or re-renting the site. The company could also directly assume the lease, request SB Energy to find a new tenant, or allow the contract to end, with the obligation to reimburse Nvidia for payments made.

The direct investment of $1.5 billion in SB Energy is distinct from the potential payment obligations arising from the $105 billion guarantees. This distinction is crucial for understanding the nature of the operation, which aims to ensure the physical infrastructure necessary for hosting AI computing systems, given that electricity and sites are becoming increasingly binding for the expansion of artificial intelligence systems. The company has stated that OpenAI has agreed to reimburse and indemnify Nvidia for any payment the chipmaker would have had to make to SB Energy based on the agreements.

This indemnity mechanism is intended to cover any losses resulting from failures or delays in contract management by the hosting company. The guarantees could remain in force until the twentieth anniversary of each lease of commencement, but could terminate prematurely if OpenAI terminates the contract according to its terms, achieves a credit rating that is satisfactory, or if other customary contract termination conditions occur. The operation has been structured to ensure that sites, energy, and data center infrastructure are available for the implementation of Nvidia's DSX AI platform, addressing the growing importance of these factors as critical constraints for the expansion of AI computing systems.