Nvidia's stock dropped by 5% following a report detailing negotiations for a $250 billion financial backstop for an OpenAI data-center project. This raised investor concerns regarding circular financing within the AI sector and Nvidia’s investments in customers needing financial support to purchase its chips. The data center, part of a U.S. government initiative, is to be developed by SB Energy, a SoftBank subsidiary.

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Nvidia Stock Slumps After Data-Center Report

Anissa Gardizy hedcut

Anissa Gardizy

Reporter

Groundbreaking for the Ohio data-center complex in March.

Groundbreaking for the Ohio data-center complex in March.Brian Kaiser/Bloomberg News

Nvidia shares fell 5% Monday, following a Wall Street Journal report detailing that the firm is in talks to provide a roughly $250 billion backstop for a massive OpenAI data-center project.

The report intensified investor concerns about circular financing in the artificial intelligence economy—and about the extent to which Nvidia is investing in its own customers, which in some cases need the chipmaker’s financial backing to purchase its chips.

The data center, located in southern Ohio, is tied to a U.S. government initiative and would be developed by SB Energy, an energy subsidiary of SoftBank, the investment firm led by Japanese billionaire Masayoshi Son.

Read Original at WSJ →