On August 17, OpenAI signed a contract with SB Energy to lease approximately 8 IT-GW of AI computing infrastructure for 20 years at PORTS-Pike in Pike County, Ohio. SB Energy will build, own, and operate the facility, with OpenAI as tenant. NVIDIA disclosed in a Form 8-K filed the same day that it had entered into a residual value guarantee agreement covering an initial approximately 4.25 IT-GW.
This disclosure lays out, as a contractual matter, the scope and conditions of OpenAI's 20-year lease and NVIDIA's payment obligation, capped at a cumulative $105 billion. However, this $105 billion figure represents neither OpenAI's total rent nor NVIDIA's immediate cash investment.
The approximately 8 IT-GW figure represents the load on the IT equipment side, such as servers, and is not the same metric as the 10 GW power generation plan. The scale of the contract, the power infrastructure, and the conditional financial risk NVIDIA bears need to be considered separately.
The $105 Billion Is Neither Rent Nor a Cash Investment
NVIDIA's residual value guarantee is not a mechanism whereby NVIDIA covers periodic rent payments the moment OpenAI becomes unable to pay. Rather, if OpenAI defaults on the lease due to bankruptcy or fails to pay rent, and SB Energy cannot recover the guaranteed minimum value even after re-leasing or selling the facility, NVIDIA is generally obligated to cover the shortfall. The payment obligation under the initial agreement is capped at a cumulative $105 billion.
Each guarantee generally takes effect at the start of the corresponding lease. One of the conditions triggering NVIDIA's payment obligation is that SB Energy's expected ready-for-service status, anticipated from 2028, must be met. While the contract has been signed, this does not mean the entire initial 4.25 IT-GW has become ready for service.
If the guarantee is triggered, NVIDIA has options including assuming the lease, requesting a re-lease, pursuing a sale process, or terminating the lease. NVIDIA can also defer its choice of remedy for up to one year while paying certain operating costs. OpenAI has agreed to reimburse and indemnify NVIDIA for the full amount NVIDIA actually pays to SB Energy.
NVIDIA's obligation ends at whichever comes earliest among: the 20th year from the start of each lease, the point at which OpenAI terminates the lease in accordance with the agreement, or the point at which OpenAI obtains a credit rating deemed sufficient under the contract. The $105 billion figure does not represent an amount of loss or an accounting entry, but rather a nominal cap set aside to cover a potential value shortfall following a specific default.
The 4.25 IT-GW Guarantee and the Unexercised Approximately 3.8 IT-GW
The scope of the guarantee NVIDIA has contracted for is not the entire approximately 8 IT-GW that OpenAI is leasing, but rather the initial approximately 4.25 IT-GW. For the remainder, NVIDIA can provide support for an additional approximately 3.8 IT-GW, but exercising this option is left entirely to NVIDIA's sole discretion. NVIDIA's announcement describes the remainder as 3.75 IT-GW, and the approximately 3.8 IT-GW figure reflects a rounding difference. The additional portion cannot be treated as a finalized guarantee.
A useful point of comparison is NVIDIA's existing facility lease guarantee, disclosed as of April 26, 2026. The maximum total exposure was $3.5 billion, with a term of 5 to 7 years, and $712 million held in escrow. While the current $105 billion nominal cap is 30 times larger, it is a residual value guarantee spanning up to 20 years, so this does not mean expected losses or initial cash outlays are also 30 times greater.
Additionally, NVIDIA's $1.5 billion investment in SB Energy is a separate transaction from the $105 billion guarantee. NVIDIA will simultaneously hold three roles at PORTS-Pike: exclusive supplier of computing infrastructure, shareholder in the company building the facility, and guarantor.
Phase 1's 800MW Available by 2028; Full Buildout Phased Through 2032
According to OpenAI, Phase 1's 800MW, which will primarily use existing AEP infrastructure, is expected to become available starting in 2028. This is not the completion timeline for the entire approximately 8 IT-GW. The full buildout is planned to proceed in phases over six years through 2032, with OpenAI stating that payments will begin only after completed capacity becomes available.
PORTS-Pike's power plan includes at least 10 GW of new generation. Of this, 9.2 GW is natural gas, and the U.S. Department of Energy states that $33.3 billion in Japanese funding under the Japan-U.S. Strategic Trade and Investment Agreement will go toward gas-fired power generation. The approximately 8 IT-GW of IT load, the 10 GW generation scale, and the 9.2 GW of natural gas are all figures related to the same facility, but they differ in denominator and purpose.
On the transmission side, SB Energy plans to invest more than $4.2 billion in regional transmission infrastructure, including high-voltage transmission lines, through AEP Ohio. The companies and the DOE state that the costs of power and transmission will be borne by the businesses involved. Additional development will require new power plants, transmission lines, and related infrastructure, with permitting, environmental review, and financing all remaining as prerequisites.
The figures surrounding this plan differ both in which company bears the cost and in how the funds will be used.
| Amount | Funding/Guarantee Layer | Status and Scope |
|---|---|---|
| Up to $105 billion | NVIDIA's residual value guarantee | Initial 4.25 IT-GW. Conditionally triggered following an OpenAI default |
| $1.5 billion | NVIDIA's investment in SB Energy | Equity investment, separate from the guarantee |
| $33.3 billion | 9.2 GW natural gas power generation | Japanese funding under the Japan-U.S. Strategic Trade and Investment Agreement |
| More than $4.2 billion | Transmission grid upgrades | Investment by SB Energy through AEP Ohio |
| $80 million | Community fund | SB Energy's existing $40 million plus an additional $40 million contributed by OpenAI |
Therefore, these figures cannot be summed to represent the total cost of the data center project. The $105 billion is the cap on a conditional guarantee, the $1.5 billion is an equity investment in a company, and the funds for power generation and transmission are directed outside the walls of the building that houses the computers.
OpenAI projects 35,000 construction jobs and 2,500 long-term operational jobs. Both figures are forward-looking projections, not actual results.
The Seller Is Also Exposed to the Buyer's Credit Risk
NVIDIA will be the exclusive supplier of AI computing infrastructure at PORTS-Pike, using its DSX platform—including GPUs, CPUs, and networking—for the initial deployment. OpenAI will become a customer for approximately 8 IT-GW. At the same time, NVIDIA is investing in SB Energy, and if the facility's value falls short following an OpenAI default, NVIDIA can choose among remedies as guarantor.
What NVIDIA is securing is long-term capacity in what the company calls LPS—land, power, and shell (buildings). While computing hardware such as GPUs turns over quickly across generations, the power source and building shell will be used throughout the 20-year lease term. NVIDIA has indicated a policy of designing the facility so it can be repeatedly upgraded to new generations. However, it has not disclosed which generation of products will be deployed, or in what quantities.
This relationship does not mean GPU sales are immediately confirmed. However, OpenAI's ability to pay and NVIDIA's financial risk are more tightly linked than in a conventional equipment supply contract. OpenAI has indicated a plan to pay rent using revenue, operating cash flow, and capital raised from investors, but this explanation itself does not guarantee future payment.
The full text of the guarantee agreement is scheduled to be filed as an exhibit to NVIDIA's Form 10-Q for the quarter ending July 26, 2026. When Phase 1's 800MW meets the conditions for ready-for-service status, and whether NVIDIA exercises its option on the additional approximately 3.8 IT-GW, will determine how far this agreement actually extends in practice.