Nvidia investing $1.5B in SoftBank data center developer behind OpenAI project

Nvidia announced on Monday a strategic $1.5 billion investment in SB Energy, a data center developer backed by SoftBank and OpenAI. This move effectively secures Nvidia’s position as the exclusive provider of compute infrastructure for OpenAI’s upcoming Ports-Pike data center, located near Cincinnati, Ohio.

Scaling Infrastructure for AI

Beyond the initial capital injection, Nvidia is extending up to $105 billion in credit to facilitate the construction of the massive facility. According to SEC filings, the site is designed for significant expansion, with the potential to scale from an initial 4.25 gigawatts to a staggering 8 gigawatts of capacity.

"This partnership ensures that Nvidia remains the backbone of the next generation of AI compute, cementing our role in powering OpenAI’s most ambitious infrastructure projects."

A Complex Energy Strategy

The project involves a unique intersection of history and modern energy demands. SB Energy plans to construct a 9.2-gigawatt natural gas power plant on land formerly managed by the U.S. Department of Energy, which was previously utilized for uranium enrichment for the nuclear arsenal and naval submarines.

Key Project Metrics

• Power Plant Cost: Estimated at $33 billion.
• Cost Inflation: Natural gas plant construction costs have surged 66% over the past two years.
• Market Impact: The facility’s scale, combined with competition from export markets, could potentially triple natural gas prices in specific regions.

While SoftBank previously divested its $5.8 billion stake in Nvidia last November to pivot toward other AI ventures, this new collaboration signals a deepening alignment between the three tech giants as they race to meet the insatiable power requirements of modern artificial intelligence.