Nvidia is in talks to invest as much as $3 billion in SB Energy, a SoftBank Group subsidiary that is developing a major data centre campus in Ohio for OpenAI. The proposed investment could become an important step in the race to build the huge computing infrastructure needed to support the rapid growth of artificial intelligence. According to a report by The Information, Nvidia, OpenAI and SB Energy are also discussing around $100 billion in credit support for the planned Ohio data centre project.
A major investment in AI infrastructure
Under the proposal being discussed, Nvidia could invest about $1.5 billion when the Ohio project deal is signed. Another $1.5 billion could be invested as part of SB Energy’s planned initial public offering, or IPO.
SB Energy is reportedly planning to go public as early as September and could raise at least $5 billion through the IPO. The company, which was founded in 2019, develops large-scale power and data centre projects.
The proposed investment shows how closely chipmakers, AI companies and infrastructure developers are becoming linked. As AI models become larger and more widely used, companies need access to massive amounts of computing power and electricity. This is pushing technology companies to invest not only in chips and software but also in the physical infrastructure needed to run AI systems.
Why this project is important?
The Ohio project is part of OpenAI’s wider effort to secure enough computing capacity to develop and operate its AI models. The planned campus could eventually reach 10 gigawatts of capacity, making it one of the largest data centre projects announced so far.
SB Energy is developing the site, while OpenAI is discussing a binding lease for the full project. For OpenAI, the project could help reduce its dependence on outside infrastructure providers and give it greater control over the computing resources needed for its growing AI business.
The scale of the project also highlights the enormous cost of building AI infrastructure. Data centres require huge investments in land, power, cooling systems, networking equipment and advanced chips.
Nvidia’s role is becoming bigger
Nvidia has already become one of the biggest beneficiaries of the AI boom because its chips are widely used to train and run AI models. But its role is now expanding beyond supplying those chips.
The company is increasingly involved in helping finance the infrastructure needed to use its technology. This makes projects such as the Ohio data centre strategically important for Nvidia because more data centres mean greater demand for its chips.
However, the company also faces pressure to manage the financial risks involved in backing such large projects. The Wall Street Journal reported that Nvidia had reduced the level of financial support it was considering for the Ohio project. It is now expected to initially guarantee less than $120 billion, compared with the $250 billion figure that had previously been discussed. The change reportedly came after investors raised concerns about Nvidia’s exposure to large financing commitments.
A move from $250 billion to a smaller guarantee
The revised guarantee suggests that Nvidia wants to remain deeply involved in the project without taking on too much financial risk at the beginning.
The Journal reported that Nvidia and OpenAI were nearing an agreement under which the chipmaker would provide a financial backstop for the first phase of the project. A deal could be signed soon, according to the report.
The development comes as Nvidia looks for other ways to bring private capital into the rapidly expanding AI infrastructure market. The company recently partnered with six major financial institutions on compute financing platforms that aim to raise more than $500 billion in third-party capital for AI infrastructure.
Why the SB Energy investment is significant
The proposed $3 billion investment in SB Energy is significant because it shows how the AI infrastructure race is moving beyond the traditional technology sector. Nvidia is a chip company, OpenAI is an AI company and SB Energy is focused on power and data centre infrastructure. Their growing links reflect how closely these parts of the AI ecosystem now depend on one another.
For Nvidia, investing directly in infrastructure could help support future demand for its chips. For OpenAI, having access to large amounts of computing capacity is essential as it expands its AI models and services. For SB Energy, backing from major technology companies could provide capital and credibility as it prepares for a major IPO. The deal could therefore become an example of how the next phase of the AI boom will be financed.
The risks behind the AI infrastructure race
The size of the proposed investments also raises questions about the financial risks involved in the AI boom. OpenAI is currently valued at about $852 billion but remains unprofitable. That means its ability to take on or support extremely large infrastructure commitments remains under scrutiny.
At the same time, Nvidia is trying to balance its desire to support the growth of the AI ecosystem with concerns from investors about how much financial exposure it should take.
If the Ohio project moves ahead, it could become a major test of how technology companies, financial institutions and infrastructure developers share the cost and risk of building the next generation of AI computing capacity.