Would that be the most expensive single thing ever built? The ISS cost around $150B and is commonly said to be the most expensive single item, but that does include running costs.
nl
'May guarantee' is an oxymoron I've never come across before. Mangled headline.
The article title is "Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports".
robotresearcher
Nvidia is turning into a savings and loan company that happens to design computer chips on the side. What could possibly go wrong.
cmiles8
I would like to see the numbers.
If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.
It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.
u1hcw9nx
This is probably a lot more related to the fact they want to make GPUs an asset class. Nvidia is banking on the fact there will be an entire market that will guarantee whatever anyone needs.
senor_digimon
In other words: the investments that were never going to happen are not going to happen.
behnamoh
The numbers have become so large that normal corporate risk management starts looking quaint
KurSix
The Möbius strip of AI financing continues…
Noaidi
Ed Zitron might be right
chocolol
What would happen to Nvidia, Anthropic, OpenAI, if tomorrow someone released an open weights model on HuggingFace that matched performance and accuracy of Opus 5 running locally on an RTX 5070? That won’t happen tomorrow, but it will likely happen someday… what’s the plan beyond “don’t be the one holding the bags?”
comments (10)
There's a release from DoE about it: https://www.energy.gov/articles/fact-sheet-department-energy...
That's a horrible amount of gas energy generation.
https://www.datacenterdynamics.com/en/news/openai-in-talks-t... has more details. The whole campus build could be as much as $500B.
Would that be the most expensive single thing ever built? The ISS cost around $150B and is commonly said to be the most expensive single item, but that does include running costs.
nl
The article title is "Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports".
robotresearcher
cmiles8
If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.
It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.
u1hcw9nx
senor_digimon
behnamoh
KurSix
Noaidi
chocolol
gymbeaux