Key facts
- Nvidia will invest $1.5 billion in SB Energy, a SoftBank subsidiary.
- SB Energy is developing a large data center campus in Ohio for OpenAI.
- The investment is part of broader discussions involving Nvidia, OpenAI, and SB Energy for approximately $100 billion in credit support for the Ohio project.
- SB Energy is targeting an IPO as soon as September and could seek to raise at least $5 billion.
Nvidia is reportedly set to invest $1.5 billion in SB Energy, a subsidiary of SoftBank Group, to help secure AI computing capacity at a data center campus being built by SB Energy for OpenAI in Ohio. This investment is part of a broader strategy by Nvidia to finance the ecosystem that consumes its chips, a move that has fueled demand but also attracted scrutiny.
SB Energy plans to develop at least 10 gigawatts of new power generation and invest $4.2 billion in Ohio's grid infrastructure to support AI data centers. The company is targeting an initial public offering (IPO) as soon as September, aiming to raise at least $5 billion. The proposed investment structure includes the initial $1.5 billion upon signing and an additional $1.5 billion through SB Energy's IPO.
This collaboration highlights the increasing trend of major tech firms integrating chips, power, and data center development to meet the demands of power-hungry AI models. Nvidia is securing land and power at the PORTS-Pike Technology Campus in Ohio for an AI data center that will utilize its graphics processors and networking gear, with an initial capacity of 4.25 GW.
Neither Nvidia nor SB Energy has publicly confirmed the details of the investment, and the transaction remains subject to ongoing negotiations.