posted in Technology
Nvidia and OpenAI in talks for up to $250 billion dollar backstop to fund AI infrastructure plans
www.cnbc.com/2026/07/27/nvidia-and-openai-in-talks-for-up-to-250-billion-dollar-ai-backstop.html
CNBCNvidia and OpenAI in talks for up to $250 billion dollar backstop to fund AI infrastructure plansThe backstop would let OpenAI raise debt for a data center campus in Pike County, Ohio, on the strength of Nvidia's credit.Replying to @eicker@lemmy.world
A $250 billion backstop is an extraordinary amount of financial engineering for an industry that’s supposed to be the next industrial revolution: If AI demand is as inevitable as claimed, why does every new data centre seem to require increasingly creative financing and ever larger guarantees?
The banks wouldn’t give them the credit needed without this. This is one of the signs of the bubble crumbling. The question isn’t if the card house collapses, but when. We’re all waiting for it. Currently the can still cover for each other, but that strategy only goes so far.