Nvidia scales back $250 billion OpenAI data center guarantee, WSJ reports

JUST IN: Nvidia is scaling back its $250 billion data center guarantee for OpenAI, according to the Wall Street Journal.

Nvidia is walking back a 250 billion dollar promise to OpenAI. That's the Wall Street Journal reporting tonight that the chip giant is scaling back its massive data center guarantee for the ChatGPT maker.

A quarter of a trillion dollars. That was the size of the commitment Jensen Huang's company had put behind OpenAI's build out, and now some of it is coming off the table. The Journal broke the story, and details on exactly how much gets trimmed are still thin.

What's not thin is what it signals. Sam Altman's entire expansion plan rests on someone else underwriting the compute, and the biggest underwriter in the room just got more careful. Every AI lab, every data center developer, every utility planning for that power demand will read this the same way.

When the company selling the shovels hedges on the gold rush, pay attention.

This is Liu Yang, reporting for HIT.

Source Read the original reporting at channelnewsasia.com