Nvidia Guarantees $105 Billion for OpenAI's Ohio Data Center Leases

Nvidia has agreed to back OpenAI's new data center campus in Pike County, Ohio, with a guarantee of up to $105 billion in conditional lease obligations, as detailed in a recent securities filing. This guarantee encompasses an initial capacity of 4.25 gigawatts of compute power, with an option for an additional 3.75 gigawatts.

The PORTS-Pike Technology Campus will be developed by SB Energy, which will own and operate the facility under a 20-year lease to OpenAI. Nvidia's guarantee includes multiple residual value assurances that protect against potential losses if OpenAI fails to meet its lease obligations. Should OpenAI become insolvent, Nvidia will cover the difference between the guaranteed lease value and what SB Energy can recover through re-letting or selling the space.

OpenAI is responsible for reimbursing Nvidia for any payments made under this guarantee, which will terminate once OpenAI attains a satisfactory credit rating. This arrangement underscores Nvidia's commitment to securing long-term infrastructure for AI development, as articulated by CEO Jensen Huang, who emphasized the importance of land, power, and capacity for scaling AI operations.

In addition to this guarantee, Nvidia is investing $1.5 billion in SB Energy and is collaborating with major financial institutions to mobilize over $500 billion for AI infrastructure projects. This strategic pivot reflects Nvidia's shift from a hardware-centric approach to leveraging financial markets for growth in the AI sector.

Nvidia Stock Insights

Bank of America analyst Vivek Arya has reaffirmed a Buy rating on Nvidia, setting a price target of $350, indicating a potential upside of 56-61% from its recent trading range of $219 to $224.

Arya anticipates Nvidia's fiscal Q2 FY2027 revenue to be between $94 billion and $95 billion, surpassing Nvidia's own guidance of $91 billion, showcasing a $3-4 billion difference.

For Q3, Arya projects revenues of $107-108 billion, exceeding Wall Street's consensus of approximately $104 billion.

Nvidia's current valuation stands at about 16 times forward earnings, the lowest multiple in roughly 10 years, suggesting either market skepticism about sustained AI spending or that the stock has yet to reflect the company's growth momentum.

The upcoming earnings report on August 26, 2026, is crucial; if Nvidia meets Arya's revenue estimates, it could affirm the belief that the company is undervalued relative to its growth potential.