Nvidia said to back $100bn OpenAI data center in Ohio

Investing.com -- Nvidia has agreed to provide more than $100 billion in credit support for a new OpenAI data center in Ohio, marking one of the largest AI infrastructure deals to date, according to a report by the Financial Times on Monday. The chipmaker will also invest $1.5 billion into SB Energy, an energy company founded as part of SoftBank Group in 2019.

OpenAI plans to lease up to 8 gigawatts of AI computing power at the PORTS-Pike Technology Campus in Pike County, Ohio. The project is expected to be completed by 2032, with the first 800 megawatts scheduled to come online in 2028. SB Energy will build, own and operate the data center, while OpenAI will be the main customer under a 20-year lease.

Nvidia will provide credit support for the land, power and infrastructure of the facility, capped at $105 billion, according to a regulatory filing. The support covers the development of the property, energy systems and warehouses that will house more than 1 million of Nvidia's AI chips. One condition requires the Ohio facility to be ready to begin operating in 2028.

Jensen Huang, Nvidia's chief executive, stated in a blog post on Monday that the company is using its scale and long-term visibility to help build out AI infrastructure. He said land, power and infrastructure have become a critical constraint on AI factory deployment.

Huang said Nvidia expects to generate $150 billion to $200 billion in revenue from the site as the exclusive supplier of computing systems. OpenAI's spending on Nvidia chips could reach as much as $600 billion by 2030 if the company extends the Ohio project beyond its initial 4.25 gigawatt commitment.

The deal follows last week's $500 billion agreement between Nvidia and a group of Wall Street firms to support AI infrastructure development. SB Energy previously struck a $1 billion alliance with OpenAI in January.

You May Also Be Interested In

• Active options: NVDA TSLA MU SPCX AAPL AMZN MSFT META INTC
• Canadian trade officials to meet U.S. counterparts in Washington Monday
• BofA sees Micron EPS topping $230 by FY30, calls peak fears overblown