NVIDIA shares fell nearly 5% on Tuesday. The stock closed the session below $200. Reports indicate NVIDIA is discussing a $250 billion financial guarantee for a massive OpenAI data center project. SoftBank’s SB Energy would operate the proposed 10-gigawatt AI campus in Ohio. OpenAI would serve as the primary tenant for the facility.
Investors expressed concern over circular financing risks involving customer credit support. The arrangement suggests NVIDIA may be assuming excessive risk to maintain AI infrastructure growth. Market analysts drew comparisons between this capital-intensive strategy and the dot-com bubble. The news triggered a broader sell-off across the semiconductor sector.