Nvidia NASDAQ:NVDA shares fell about 5% on Monday after a report said the chipmaker is in talks to back roughly $250 billion in financing for an OpenAI data center project, raising investor concerns about growing financial exposure to its AI customers and the sustainability of AI infrastructure spending.
The proposed arrangement would support financing for a massive AI campus in Ohio being developed by SoftBank-owned SB Energy, where OpenAI is expected to become the primary tenant. According to the report, Nvidia's guarantee would help secure construction and lease financing rather than directly fund purchases of its AI chips, though the company is also discussing a separate financing package tied to future GPU sales.
The report renewed debate over so-called "circular financing," in which technology suppliers provide financial backing to customers that ultimately purchase their products. Investors appeared concerned that Nvidia could be assuming greater credit risk as AI infrastructure projects become larger and more capital intensive, particularly given OpenAI's massive funding requirements.
The concerns weighed on the broader semiconductor sector, with several AI-related chip stocks also declining. Despite continued demand for AI hardware, investors focused on the financial risks associated with funding next-generation AI infrastructure rather than the long-term growth opportunity.