UPDATE 1-OpenAI weighs leasing Ohio data center with Nvidia backing, The Information reports

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Updates with details and background

- OpenAI is in talks to lease a proposed 10-gigawatt data center campus on federal land in Ohio, in a deal that could include financial backing from Nvidia NVDA.O, The Information reported on Tuesday, citing two people with direct knowledge of the discussions.

Here are some details:

  • The campus could cost at least $500 billion to build, based on current prices for chips, labour, power and other inputs, the report said.

  • OpenAI would control the equipment at the facility under a 20-year lease, with payments starting once operations begin; the first phase is expected in 2028, the report added.

  • The facility, among the largest of its kind, would be developed by SB Energy, a unit of SoftBank 9984.T, on Department of Energy land in southern Ohio.

  • Nvidia is expected to supply hardware in the facility and provide a financial guarantee for OpenAI's lease and SB Energy's financing, according to the report.

  • Reuters could not immediately verify the report. OpenAI and Nvidia did not immediately respond to Reuters' requests for comment outside regular business hours.

  • Earlier this year, the ChatGPT maker paused its proposed 'Stargate' data centre project in the UK, citing regulatory hurdles and high energy costs.

  • Separately, Apollo APO.N and Blackstone BX.N are financing a $35 billion AI capacity expansion for Anthropic using Broadcom AVGO.O chips, Reuters reported this week.