Nvidia is not backing OpenAI’s rent. It is backing the buildings
A residual value guarantee is a promise about an object, not about a tenant. Someone builds a thing. Someone else rents it. A third party promises the thing itself will still be worth a set amount. If the renter walks, the owner relets or sells. The guarantor covers only the shortfall. It is the structure behind a car lease. It now underpins the largest data centre project yet announced.
Nvidia confirmed the arrangement on Monday. It has secured land, power and shell capacity at the PORTS-Pike Technology Campus in Pike County, southern Ohio. SB Energy will build, own and operate the campus. OpenAI has signed a 20-year lease as the customer. The initial phase covers 4.25 IT-gigawatts, and Nvidia holds an option on the remaining 3.75.
“Now is the time to scale the AI infrastructure that will power the next industrial revolution,” said Jensen Huang, Nvidia’s founder and chief executive.
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