Key facts
- OpenAI has secured a 20-year lease for a data center in Ohio, starting in 2028.
- NVIDIA is backing the lease with a commitment capped at $105 billion.
- SB Energy will build and operate the data center infrastructure.
- The facility will host NVIDIA AI compute infrastructure, including GPUs, CPUs, and networking.
- NVIDIA CEO Jensen Huang stated that OpenAI will pay the lease and the capacity can be resold if not utilized.
AI firm OpenAI has entered into a 20-year lease agreement for a data center in Ohio, with the lease scheduled to commence in 2028. This significant development is supported by NVIDIA, which has committed up to $105 billion towards the initiative. The partnership involves SB Energy, which will be responsible for the construction and operation of the data center's infrastructure.
The facility is designed to host NVIDIA's AI compute infrastructure, utilizing its comprehensive DSX AI factory platform, which includes GPUs, CPUs, and networking components. NVIDIA has secured an initial 4.25 IT-GW of capacity, with an option to acquire an additional 3.75 IT-GW. NVIDIA's aggregate payment obligation under these agreements is capped at $105 billion.
NVIDIA CEO Jensen Huang addressed questions regarding the financing, emphasizing that OpenAI will be the one paying for the lease. He also noted that NVIDIA has the flexibility to resell the capacity to other AI firms if OpenAI does not utilize it, highlighting the versatility of NVIDIA's compute offerings.
This move by OpenAI comes amid a surge in demand for AI infrastructure, with NVIDIA stating that AI is becoming a critical infrastructure requiring a full stack of resources. The deal also precedes a potential initial public offering (IPO) for OpenAI, though current market predictions suggest a low probability of it occurring within the next year.