Nvidia backs OpenAI data center financing in Ohio
Nvidia said it will provide credit and compute for an OpenAI data center in Ohio, with initial 4.25 gigawatts of capacity, as part of growing AI infrastructure financing.
SB Energy will build and manage the data center at the PORTS-Pike Technology Campus in Pike City, Ohio, under a 20-year lease to OpenAI. OpenAI holds a stake in SB Energy, and OpenAI CEO Sam Altman was an early investor in the company. Nvidia CEO Jensen Huang said in a statement: "We are securing long-lived infrastructure for NVIDIA compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics."
The arrangement follows earlier reports of Nvidia exploring a backstop of up to $250 billion for a 10-gigawatt data center at the Ohio site, according to CNBC. The Wall Street Journal reported last week that Nvidia was set to reduce that guarantee to less than $120 billion for the buildout.
The Ohio deal is the latest in a series of financing moves by Nvidia to support large AI data center projects, a practice that has raised concerns about circular financing in the AI trade. Last week, Nvidia arranged $500 billion in financing for customers to buy its hardware for data center projects.
As part of the Ohio agreement, SB Energy and SoftBank will build power sources supporting 10 gigawatts of energy and invest at least $4.2 billion in grid infrastructure for the region. Nvidia will invest $1.5 billion in SB Energy.
OpenAI said the new data center will support 35,000 new construction jobs through 2032 and 2,500 long-term positions.