NVIDIA (NVDA) steps on the brake with AI spending, cuts in half AI guarantee commitment to OpenAI!

# Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports

>[Nvidia](https://finance.yahoo.com/quote/NVDA/) has revised its plans to support a proposed OpenAI data center project in ‌Ohio and is now expected to initially guarantee less ‌than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal ​reported on Friday, ....
The Journal said Nvidia and OpenAI are nearing an agreement, with the chipmaker expected **to provide a financial backstop only for the ‌first phase of the ⁠project.** A deal could be signed as early as this weekend, according to the report.

>• ⁠The change was made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments, the newspaper said.

# Source: [NVidia scales back ](https://finance.yahoo.com/technology/ai/articles/nvidia-scales-back-250-billion-234356524.html)

The idea behind all this circular financing: The supported Datacenter gets equipped with NVDA tech.

Probably (my opinion) they were getting cold feet about oversize/overcapacity (=>lower profitabliity) and pressure from investors hence they now only backstop the first phase. BTW: NVDA does 80B of stock buybacks each year (which artificially increases stock price and management bonus/shares). If they have so many genius ideas to invest in, why those massive buybacks. That usually only makes sense, if a company has no profitable use for its money. At the same time, they issued a big bond to get financing from capital market. This only makes sense, if you invest in something more profitable than the interest payment. All strange here.