Nvidia investing $1.5B in SoftBank data center developer behind OpenAI project
Nvidia is investing $1.5 billion into SB Energy to secure its position as the sole compute infrastructure supplier for an OpenAI-linked data center in Ohio. The project includes a massive $33 billion natural gas power plant, highlighting the immense energy requirements of modern AI infrastructure.
Why it matters
The massive capital expenditure on energy infrastructure for AI development illustrates the growing intersection between the tech industry and energy markets, with potential implications for utility prices.
Nvidia said on Monday that it will invest $1.5 billion in SB Energy, a data center linked to SoftBank and OpenAI.
The investment ensures that Nvidia will be the sole supplier of compute infrastructure at OpenAI’s Ports-Pike data center near Cincinnati, Ohio. Nvidia will also provide up to $105 billion in credit to help build the facility, which could scale from an initial 4.25 gigawatts to 8 gigawatts in size, according to documents the company filed with the SEC.
SB Energy’s existing investors include SoftBank and OpenAI. SoftBank had previously held $5.8 billion worth of Nvidia stock, which it sold in November to help fund other AI investments.
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