Nvidia to provide up to $105 billion guarantee for OpenAI’s Ohio data center
Nvidia is providing a guarantee of up to $105 billion to help OpenAI lease a large data center in Pike County, Ohio, being developed by SoftBank-owned SB Energy. This significant financing commitment aims to secure infrastructure for Nvidia's chips and address the growing hurdles of land and power for data center development. The project includes plans for substantial new power generation and grid infrastructure investments in partnership with AEP Ohio.
Nvidia has committed up to $105 billion in guarantees to support OpenAI's lease of a vast 8-gigawatt data center in Pike County, Ohio, which is being developed by SoftBank-owned SB Energy. This substantial financing commitment, announced by Jensen Huang's firm, follows a prior $1 billion investment from OpenAI and SoftBank to expand data center infrastructure. Nvidia will also invest an additional $1.5 billion in SB Energy and serve as the exclusive chip provider for the Ohio facility, with the first 800 megawatts expected online by 2028 under a 20-year lease for OpenAI.
The deal highlights Nvidia's strategic approach of financing infrastructure to bolster demand for its chips, though it has drawn scrutiny regarding potential circular funding between the chip giant and its customers. CEO Jensen Huang defended the arrangement, stating Nvidia is leveraging its scale to secure essential, long-term compute infrastructure. The guarantee covers a portion of OpenAI's lease and power payments, ensuring the site's value if OpenAI defaults on its obligations.
Developing large-scale data centers faces increasing challenges with land acquisition and power supply, exacerbated by an aging U.S. electrical grid and growing community opposition focused on rising electricity prices and potential water wastage. To facilitate the Ohio site, SoftBank and SB Energy plan to construct at least 10 gigawatts of new power generation and invest $4.2 billion in regional grid infrastructure, collaborating with AEP Ohio.
The project is projected to generate approximately 35,000 construction jobs through 2032 and an estimated 2,500 long-term operating jobs, according to the ChatGPT maker.