WSJ reports that Nvidia is cutting its proposed OpenAI data-center guarantee from $250B to below $120B, reducing its initial balance-sheet exposure.

The revised backstop would cover only the first roughly 5GW of a planned 10GW Ohio campus.

So basically, Nvidia is converting a single enormous guarantee into a staged financing decision where the first 5GW can serve as evidence for whether the remaining 5GW deserves more capital.

OpenAI is still negotiating a binding lease for the full 10GW, so the project's physical ambition has not been reduced.

The guarantee is meant to support the lease and debt financing, giving lenders more confidence in the project's funding and potentially lowering borrowing costs.

Staging the commitment would let Nvidia reassess the project before deciding whether to support financing for the remaining 5GW.