Nvidia Commits $105 Billion to OpenAI as It Seeks $500 Billion for AI Infrastructure
Updated
Updated · Yahoo Finance · Aug 26
Nvidia Commits $105 Billion to OpenAI as It Seeks $500 Billion for AI Infrastructure
3 articles · Updated · Yahoo Finance · Aug 26
Summary
$105 billion of Nvidia's $108.5 billion guarantees is tied to SB Energy's OpenAI data-center buildout, with support phasing in as nine sites come online from fiscal 2029 and declining as OpenAI pays.
Nvidia said AI cloud providers and model makers need more computing power than their balance sheets can support, prompting it to extend financing, longer payment terms and direct backing to keep infrastructure spending moving.
$36 billion of agreements already pair Nvidia hardware sales with commitments to use customers' cloud capacity, while accounts receivable jumped to $63.1 billion and average collection time stretched to 60 days from 45.
The financing push sits alongside a rapidly expanded investment portfolio: public and private equity holdings reached $95.6 billion by July, and Nvidia said it has preliminary agreements aimed at channeling more than $500 billion into AI infrastructure.
$96.2 billion in quarterly revenue, $89 billion in data-center sales and roughly $108 billion in current-quarter guidance underscored the cash engine behind a strategy investors increasingly view as Nvidia acting like an AI-financing hub.