Key Takeaways
- Nvidia is moving beyond chips into AI infrastructure.
- OpenAI is locking in massive computing capacity for the long term.
- Power is becoming as important as AI chips.
Nvidia invests $1.5 billion in SB Energy, a SoftBank subsidiary, as part of a major agreement to support OpenAI’s planned data center campus in Pike County, Ohio. The deal also includes up to $105 billion in guarantees from Nvidia to support OpenAI’s 20-year lease of the facility, underscoring the chipmaker’s growing role in financing the infrastructure needed to expand artificial intelligence.
The planned campus, known as the PORTS-Pike Technology Campus, is expected to provide about 8 gigawatts of computing capacity eventually. The first phase is planned at roughly 4.25 gigawatts, with an initial 800 megawatts expected to become operational by 2028. Nvidia is set to become the exclusive chip supplier for the facility, linking its infrastructure investment directly to future demand for its AI processors.
The investment comes months after OpenAI and SoftBank jointly committed $1 billion to SB Energy to accelerate the development of AI data center infrastructure. The latest agreement brings OpenAI, Nvidia and SoftBank together around one of the largest planned AI computing campuses in the United States.
The scale of the project reflects the rapidly increasing computing requirements of AI models and services. OpenAI has been securing additional computing capacity as demand for its products grows, while Nvidia is seeking to ensure that sufficient infrastructure is available to deploy its chips at scale.
Nvidia expands beyond selling AI chips
The agreement marks another step in Nvidia’s expanding role across the AI infrastructure ecosystem. While the company remains best known for its graphics processors and data center chips, it has increasingly become involved in financing the infrastructure required to put those chips to work.
The $105 billion guarantee is not intended to cover the entire construction cost of the Ohio campus. Instead, it is designed to support specific financial obligations, including portions of OpenAI’s lease and power payments, while helping preserve the value of the data center if OpenAI were unable to meet its commitments. The broader financing package is expected to combine equity and debt, potentially including investment linked to an SB Energy public offering, SoftBank funding, project-finance loans and bonds.
The structure has also intensified discussion around the increasingly interconnected financing of the AI industry. Nvidia invests in and helps fund infrastructure expected to rely heavily on its technology, creating a business cycle in which infrastructure investment can generate additional demand for the chipmaker’s products.
Nvidia CEO Jensen Huang has argued that the scale of AI infrastructure requirements makes such investments increasingly necessary. The company has been pursuing similar financing initiatives elsewhere, including a broader effort involving major financial institutions to mobilize more than $500 billion for AI infrastructure.
The Ohio project could also become a significant source of future Nvidia revenue. Huang has estimated that the initial 4.25-gigawatt facility could contribute as much as $200 billion in revenue to Nvidia. Across its broader relationship with OpenAI, Nvidia could generate as much as $600 billion in revenue by 2030 through the sale of computing capacity, including potential expansion at the Ohio site.
Power becomes critical to the AI race
The project also highlights a growing challenge for the AI industry: securing enough electricity to operate increasingly power-intensive data centers.
To support the Ohio campus, SoftBank and SB Energy plan to develop at least 10 gigawatts of new power generation. The partners also plan to invest $4.2 billion in regional grid infrastructure through a partnership with AEP Ohio. The development is expected to create around 35,000 construction jobs through 2032 and approximately 2,500 permanent operating positions.
OpenAI has said it plans to work with SB Energy, Nvidia and the U.S. Department of Energy on the project while contributing to local infrastructure and economic development. The company has also emphasized responsible water use and opportunities for local workers and businesses.
The emphasis on electricity reflects a broader shift in the AI infrastructure race. Advanced chips alone are no longer enough to expand computing capacity. Companies also need access to land, power generation, transmission networks, cooling systems, and long-term financing.
For Nvidia, the Ohio agreement secures infrastructure that can support future generations of its technology while deepening its relationship with OpenAI. For OpenAI, it provides access to a large-scale computing campus capable of supporting its long-term AI ambitions. For SB Energy and SoftBank, the fact that Nvidia invests in the project provides additional financial backing for a major infrastructure development.
The deal ultimately illustrates how the AI boom is creating increasingly close ties between technology companies, chipmakers, energy providers and financial institutions. As AI systems become more computationally demanding, control over the physical infrastructure behind them is emerging as a critical part of the competition to scale artificial intelligence.
