Nvidia to invest $1.5bn in SB Energy under OpenAI data center deal
Nvidia is investing $1.5 billion in SB Energy and guaranteeing up to $105 billion in lease payments to secure 8 GW of AI computing capacity at a new data center in Pike County, Ohio, being developed for OpenAI. The project, with an initial 4.25 GW capacity, is expected to come online in phases starting in 2028. This move aims to expand AI infrastructure and involves SoftBank and SB Energy investing in power generation and grid infrastructure.
Nvidia has committed to a significant infrastructure financing deal, agreeing to guarantee up to $105 billion in lease payments for a large data center in Pike County, Ohio, being developed by SoftBank Group-backed SB Energy for OpenAI. Additionally, Nvidia will invest $1.5 billion directly in SB Energy, securing up to 8 gigawatts of AI computing capacity at the new campus. The initial phase, offering 4.25 GW of capacity, is projected to commence operations in 2028.
This strategic move by Nvidia, a leading chipmaker, aims to bolster the AI computing infrastructure around its products, ensuring demand for its chips while raising questions about circular funding within the tech ecosystem. SoftBank and SB Energy plan substantial investments in new power generation and regional grid infrastructure, partnering with AEP Ohio to develop at least 10 GW of new power capacity. The project is anticipated to generate approximately 35,000 construction jobs by 2032 and 2,500 long-term operational positions. This investment follows a prior $1 billion commitment from OpenAI and SoftBank in January for their Stargate AI initiative.