Nvidia Announces $1.5 Billion Investment in SB Energy for OpenAI Data Center

Nvidia has confirmed it will invest $1.5 billion in SB Energy, a data center in connection with SoftBank and OpenAI. This strategic investment grants Nvidia the role of exclusive supplier for compute infrastructure at OpenAI’s Ports-Pike data center located near Cincinnati, Ohio.

In addition to the direct investment, Nvidia plans to provide up to $105 billion in credit to assist in the construction of the facility, which is designed to have a capacity that may expand from an initial 4.25 gigawatts to 8 gigawatts, as detailed in documents filed with the SEC.

SB Energy counts SoftBank and OpenAI among its existing investors. Notably, SoftBank had previously owned $5.8 billion in Nvidia stock but sold those shares in November to finance other AI-related ventures.

The data center project will also include the development of a 9.2 gigawatt natural gas power plant on land owned by the U.S. Department of Energy. This site has historical significance, having been used for enriching uranium for the U.S. nuclear arsenal and for submarines in the U.S. Navy.

Estimated costs for the power plant stand at $33 billion, driven by a dramatic increase in the expenses associated with building natural gas power facilities, which have surged by 66% in the last two years, according to BloombergNEF.

Upon completion, SB Energy’s power plant and others will compete against export markets for natural gas, a scenario that could potentially triple natural gas prices in certain regions of the United States.