Nvidia to invest $1.5 billion in SB Energy under OpenAI data center deal
- On August 17, Nvidia announced a $1.5 billion investment in SoftBank-backed SB Energy, securing up to 8 gigawatts of AI computing capacity at the PORTS-Pike Technology Campus near Piketon, Ohio, for OpenAI.
- To support the buildout, SB Energy and SoftBank plan to build at least 10 gigawatts of new power generation and invest $4.2 billion into Ohio grid infrastructure supporting the data center expansion.
- Nvidia's financing strategy follows a pattern of the chipmaker financing customers using its chips, a practice that has drawn scrutiny over circular capital flows, following a $1 billion injection from OpenAI and SoftBank in January.
- The PORTS-Pike development integrates into the broader Stargate buildout across the American Midwest, with the companies also developing a separate 3.2 gigawatt site in Georgia.
- These projects highlight the immense financial burden required to sustain large-scale AI computing, with analysts noting this financing structure could further lower borrowing costs for SB Energy.
102 Articles
102 Articles
OpenAI is preparing to lease, for twenty years, the largest computing center ever built for artificial intelligence in the United States. This project illustrates the insatiable appetite of AI giants for data centers, but also the extraordinary funding needs of the sector.
In order to meet the enormous need for data centers, chip manufacturers and the financial industry are promoting institutional investors. But how much risk is there in this investment?
Nvidia’s $105 Billion Backstop Powers OpenAI’s Ohio AI Colossus
OpenAI just locked in one of the largest infrastructure deals in tech history. The company signed a long-term lease for a sprawling data center campus in Pike County, Ohio. Nvidia stands behind it with up to $105 billion in financial guarantees. The project, developed by SoftBank subsidiary SB Energy, could cost as much as $500 billion when chips and everything else are counted. And it signals how power, not just silicon, now dictates the pace o…
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