Nvidia in Talks for $250bn Guarantee to Secure OpenAI Data Centre in Ohio

A Pattern of Interlinked AI Investments

The Nvidia-OpenAI talks follow a series of large-scale commitments between the two companies and other tech giants. In 2025, OpenAI announced it would purchase $250 billion in cloud services from Microsoft, one of its key backers. That same year, Nvidia committed $100 billion to OpenAI for building data centres using its chips, followed by an additional $30 billion pledge in early 2026.

These arrangements have drawn scrutiny from analysts who compare them to the circular financing practices that preceded the dot-com bubble of the late 1990s. Aleksandar Tomic, associate dean at Boston College, noted that companies like Nvidia, Microsoft and Oracle have invested billions into AI developers who then become major purchasers of their cloud computing services, allowing the same capital to flow through multiple companies and appear as revenue.

OpenAI, valued at $852 billion, remains unprofitable. Its partners in data centres, chips and processing power held as much as $96 billion in debt as of November, raising questions about the long-term viability of such commitments.

Market Reaction and Expert Views

Nvidia's stock fell 4.9 percent in midday trading on Monday following the announcement. Tomic suggested the market's unease reflects deeper concerns: "If everything is so hunky-dory and everything is full steam ahead in the entire AI ecosystem, why is this kind of deal even needed? I think that's what's giving the market jitters."

However, Michael Monaghan, founder of Founder's ETF, offered a more optimistic interpretation. He argued that transactions within the AI sector represent a functioning economy rather than circular financing, comparing it to buying coffee from a local shop whose owner might then invest in his fund. "I understand the pushback, but I think there is less substance there," Monaghan said.

Despite Monday's dip, Nvidia's stock remains on an upward trajectory, up 4 percent year to date, 11 percent over the past year and 908 percent over the past five years.

Political Headwinds and Next Steps

The deal faces an increasingly challenging political landscape for data centre construction. New York became the first US state to impose a one-year moratorium on new data centre construction last week, with at least a dozen other states considering similar legislation. In Texas, Republican Governor Greg Abbott called for a ban on data centre construction in rural areas, while Democratic state congressman James Talarico proposed ending tax breaks for such projects and requiring operators to fund power grid costs. A recent Gallup poll found that 71 percent of Americans oppose data centre construction in their local communities.

Neither OpenAI nor Nvidia responded to requests for comment on the reported negotiations.