Nvidia Commits up to $105B to Back OpenAI’s Ohio AI Data Center
Synopsis
Nvidia has pledged up to $105 billion to support OpenAI’s Ohio AI data centre project and invested $1.5 billion in SB Energy, reinforcing its long-term strategy to expand global AI infrastructure.
Nvidia has agreed to provide a guarantee of up to $105 billion to support OpenAI's 20-year lease of a massive AI data center in Pike County, Ohio, marking one of the chipmaker's largest infrastructure financing commitments to date.
As part of the agreement, Nvidia will also invest $1.5 billion in SB Energy, the SoftBank owned developer behind the project. The move strengthens Nvidia's role in expanding AI infrastructure while ensuring long-term demand for its GPUs.
The Ohio facility is expected to reach up to 8 gigawatts of computing capacity with the first 800 megawatts scheduled to come online in 2028. Nvidia will serve as the site's exclusive chip supplier.
The announcement follows the company's recent efforts to accelerate AI infrastructure funding, including a financing initiative launched with major financial institutions to attract more than $500 billion in third-party investment.
Nvidia Expands AI Infrastructure Strategy
Nvidia said its guarantee does not cover the entire project cost. Instead, it protects part of OpenAI's lease and power payment obligations while ensuring the facility retains a minimum asset value if the lease is terminated.
CEO Jensen Huang rejected concerns that the arrangement represents circular financing. He said the company is leveraging its scale to secure long-term infrastructure where successive generations of Nvidia chips can be deployed efficiently.
Project Targets Jobs and Future AI Growth
The data center is expected to begin with an initial capacity of 4.25 GW before expanding to 8 GW.
Nvidia estimates the project could contribute as much as $200 billion in revenue over time. Moreover, its broader partnership with OpenAI could generate up to $600 billion in revenue by 2030 through the deployment of 16 GW of computing power.
To support the development, SoftBank and SB Energy plan to build at least 10 GW of new power generation and invest $4.2 billion in regional grid infrastructure.
According to OpenAI, the project is expected to create around 35,000 construction jobs by 2032 and approximately 2,500 permanent operating jobs. The companies have also committed $80 million towards community projects with support from U.S. federal agencies helping reduce potential construction delays.
Source: Reuters
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