Nvidia invests $1.5B in SB Energy, backs OpenAI's Ohio data center with $105B guarantee
30 Sources
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Nvidia investing $1.5B in SoftBank data center developer behind OpenAI project
Nvidia said on Monday that it will invest $1.5 billion in SB Energy, a data center linked to SoftBank and OpenAI. The investment ensures that Nvidia will be the sole supplier of compute infrastructure at OpenAI's Ports-Pike data center near Cincinnati, Ohio. Nvidia will also provide up to $105
[2]
Nvidia to invest $100bn for OpenAI data centre in Ohio
Chipmaker also invests $1.5bn into SB Energy, an energy company founded as part of SoftBank Group Nvidia has agreed to provide a more than $100bn backstop for a huge new OpenAI data centre in Ohio that is being developed alongside a SoftBank-led energy company, in one of the biggest AI
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Nvidia backs financing for OpenAI data center in Ohio
* Nvidia will provide the credit and compute for an OpenAI data center in Ohio * SB Energy will build and manage the data center in Pike City, Ohio * The deal is Nvidia's latest to support the sprawling artificial intelligence data center buildout In this article * OPENAI.FG * NVDA Follow
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Nvidia to Back Ohio Data Center With as Much as $105 Billion
Sign up for the On Tech newsletter. Get our best tech reporting from the week. Get it sent to your inbox. Nvidia said on Monday that it had agreed to spend as much as $105 billion to back one of the world's largest data centers, which is being built in Ohio and will be leased to OpenAI. The sum
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Nvidia's $105bn Ohio guarantee covers buildings, not OpenAI
Nvidia signed the Ohio deal on Monday and capped its exposure at $105bn, down from the $250bn first reported in July. The cut matters less than the rewrite. The guarantee now covers what the buildings are worth, not what OpenAI owes, and OpenAI has agreed to repay anything Nvidia pays out. A
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Securing the Infrastructure of Intelligence
Land, power and shell: The next critical resource for AI factories. AI factories are the defining infrastructure of the AI era -- where compute transforms energy and data into intelligence that powers every business, industry and country. In the AI economy, compute is revenue. AI factories
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OpenAI's Ohio data center project to have 8 GW of compute capacity
OpenAI, SoftBank's SB Energy, and Nvidia announced a massive 20-year data center site in Pike County, central Ohio. The facility will feature 8 IT gigawatts of computing capacity powered by 10 gigawatts of energy. The project sits partly on federal property once dedicated to enriching uranium.
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Nvidia puts $1.5bn into SoftBank's SB Energy to power OpenAI's Ohio data centre
The chipmaker will take up to 8 gigawatts of capacity at an Ohio campus being built for OpenAI, in another deal that ties Nvidia's fortunes ever closer to the customers buying its chips. Nvidia has agreed to invest $1.5 billion in SB Energy, the US power and infrastructure developer backed by
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OpenAI announces massive Ohio data center with Nvidia guarantee
Why it matters: The facility -- which will be built and owned by SoftBank's SB Energy -- illustrates the immensity of the computing and power needed to fuel the growth of the AI economy. * It's also likely to reignite fears of a "circular" AI bubble that could create systemic financial
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NVIDIA Guarantees SB Energy's PORTS-Pike Technology Campus in Ohio to Exclusively Host NVIDIA AI Compute
* NVIDIA will be the exclusive AI compute infrastructure provider at PORTS-Pike. * NVIDIA to provide credit support on land, power, and shell buildout to secure initial 4.25 IT-GW, with an option to take the remaining 3.75 IT-GW * OpenAI will be the customer for 8-IT GW * PORTS-Pike campus
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Nvidia cuts $130B+ from OpenAI's Ohio 10GW campus guarantee: Reports
Nvidia has reportedly cut its proposed financial guarantee for OpenAI's massive Ohio data center project to less than $120 billion. The chipmaker had considered a guarantee of about $250 billion in late July. Investor concerns over the financial risks tied to the project have now prompted Nvidia
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OpenAI data center deal with Nvidia comes in $145 billion lower than reported -- signaling concerns of artificial demand for chips | Fortune
What came first -- the chicken or the egg? Or in AI's case, the investment or the revenue? Nvidia is guaranteeing up to $105 billion for OpenAI's planned data center campus in Pike County, Ohio, coming in lower than the roughly $250 billion guarantee it was considering, according to reporting by
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OpenAI to lease massive new AI data center in US, backed by Nvidia
San Francisco (United States) (AFP) - ChatGPT-maker OpenAI will lease a massive new data center in the United States for 20 years, backed by a $105 billion financing commitment from Nvidia, according to a regulatory filing published Monday. The project will be built on the site of a former Cold
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OpenAI leases 10-gigawatt AI data center campus from SoftBank's SB Energy
OpenAI leases 10-gigawatt AI data center campus from SoftBank's SB Energy OpenAI Group PBC today announced that it has signed a 20-year lease for a sprawling data center cluster in Ohio. The campus is being built on the premises of a former uranium processing plant. The construction project is
[15]
Nvidia shifts focus from chip dominance to AI infrastructure investment
Nvidia's strategy is increasingly focused on leveraging its financial resources to maintain its leadership in artificial intelligence as competition intensifies. The company has seen its substantial technological advantage eroded by competitors such as Advanced Micro Devices (AMD) and Google,
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Nvidia invests $1.5 billion in Ohio AI campus to boost local economy
Nvidia will invest $1.5 billion in SB Energy to develop an 8-gigawatt AI data center campus in Pike County, Ohio. OpenAI has secured a 20-year lease to operate the facility, which will utilize Nvidia's computing resources exclusively. The investment positions Nvidia as a shareholder in SB Energy
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Nvidia to provide up to $105 billion guarantee for OpenAI's Ohio data centre
The new deal is the latest example of Nvidia financing the infrastructure built around its chips, a strategy that helps drive demand but has also raised questions about circular funding flows between the chip giant and its customers. Huang said the new deal was not circular financing and that
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Elon Musk Warns Nvidia-Backed $105 Billion Ohio Data Center for OpenAI Will Take 'Much Longer' to Come On
On Tuesday, Elon Musk raised doubts about the timeline for an Ohio data center project backed by Nvidia Corp (NASDAQ:NVDA) and intended to support OpenAI's growing artificial intelligence infrastructure needs. Musk Doubts Timeline for Nvidia-Backed Data Center Musk responded to a report that
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Nvidia partners with Wall Street to unlock $500 billion for AI
Nvidia has formed strategic partnerships with major Wall Street investment firms to secure financing for its artificial intelligence (AI) infrastructure initiatives, seeking to raise over $500 billion. The partnerships include Apollo Global Management, BlackRock's Global Infrastructure Partners,
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Nvidia scales back funding guarantee for Ohio OpenAI data centre: WSJ
According to the report Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, the report said. The change were made after investors raised concerns about
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Nvidia to Back OpenAI's Massive Ohio AI Data Center with Up to $105 Billion in Guarantees
Those concerns have become more prominent following Nvidia's partnership with six major financial institutions, including BlackRock, to establish financing platforms designed to mobilise more than $500 billion in third-party capital for AI infrastructure. Nvidia is set to provide up to $105
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Nvidia-OpenAI Deal Isn't 'Circular Financing' - NVIDIA (NASDAQ:NVDA)
Nvidia-OpenAI Deal Isn't 'Circular Financing,' Says Jensen Huang, Sees $600B Compute Opportunity Nvidia (NASDAQ:NVDA) CEO Jensen Huang pushed back Monday on the "circular financing" label for Nvidia's support of OpenAI's massive Ohio AI buildout. "No. OpenAI will pay the lease," Huang wrote,
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Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports - The Korea Times
Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar with the matter. * The
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OpenAI Ohio Data Center Secures Major Financial Support from NVIDIA
NVIDIA has agreed to support a major OpenAI data center project in Pike County, Ohio. The chipmaker may provide up to $105 billion in credit backing for the development. OpenAI plans to lease computing capacity from the site for 20 years. Meanwhile, SB Energy will build, own and operate the
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Nvidia provides $105B in financing toward OpenAI's massive Ohio data center -- will be one of biggest in world
Chip-making giant Nvidia will provide up to $105 billion in financing toward a massive AI data center in Ohio that will be leased by Sam Altman's OpenAI and is expected to be one of the largest of its kind in the world, the companies announced Monday. OpenAI has inked a 20-year deal for the site,
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Nvidia weighs $3 bln in SB Energy for Ohio AI data center - The Information By Investing.com
Investing.com-- Nvidia (NASDAQ:NVDA) is in talks to invest as much as $3 billion in SB Energy, a SoftBank (TYO:9984) Group-backed developer of a planned data center campus in Ohio for OpenAI, The Information reported on Saturday, citing people familiar with the discussions. The investment is being
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NVIDIA Weighs $3 Billion SB Energy Bet in AI Infrastructure Push
NVIDIA may invest as much as $3 billion in SoftBank-backed SB Energy as discussions advance around financing major AI infrastructure. The talks also involve OpenAI and roughly $100 billion in credit support for a proposed Ohio project. The information could invest about $1.5 billion when the Ohio
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Nvidia cuts planned OpenAI data center guarantee to below $120 billion - WSJ By Investing.com
Investing.com -- Nvidia (NASDAQ:NVDA) has reduced its planned financial guarantee for OpenAI's proposed data center in Ohio to less than $120 billion initially, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday. Nvidia and OpenAI are nearing an agreement
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Nvidia teams up with SB Energy to secure LPS capacity for OpenAI
OpenAI will build and operate a world-class AI factory at PORTS-Pike, using Nvidia's DSX full-stack AI factory platform, including GPUs (Graphics Processing Unit), CPUs (Central Processing Unit), networking and infrastructure software. The initial deployment is expected to provide 4.25 gigawatts
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Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports
Aug 14 (Reuters) - Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, citing people familiar with the
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Nvidia commits up to $105 billion to guarantee OpenAI's massive Ohio data center at PORTS-Pike Technology Campus, while investing $1.5 billion in SoftBank-linked data center developer SB Energy. The deal positions Nvidia as the exclusive chip provider for what could become one of the world's largest AI infrastructure projects.
Nvidia secures exclusive AI infrastructure deal through SB Energy investment
Nvidia announced on Monday a $1.5 billion investment in SB Energy, a data center developer linked to SoftBank and OpenAI
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. The investment ensures Nvidia will be the sole supplier of compute infrastructure at OpenAI's PORTS-Pike Technology Campus near Cincinnati, Ohio1
. SB Energy, an energy company founded as part of the SoftBank Group in 2019, will build, own and operate the data center2
. The deal represents one of the biggest AI infrastructure arrangements yet, positioning Nvidia to generate between $150 billion to $200 billion in revenue from the site as the exclusive chip provider2
.
Source: NVIDIA
Ohio data center project scales to 8 gigawatts with phased rollout
OpenAI plans to lease as much as 8 gigawatts of AI computing power at the Ohio facility, with completion expected by 2032
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. The first 800 megawatts is expected to come online in 2028, as OpenAI races to secure new computing power to fuel its growth2
. The ChatGPT maker signed a 20-year lease to become the main customer at the site, which will ultimately house more than 1 million Nvidia AI chips2
. OpenAI stated the capacity would help "establish the data center as a model for future next-gen supercomputer design"2
. If OpenAI extends the project beyond its initial 4.25 gigawatt commitment, spending on Nvidia chips could reach as much as $600 billion by 20302
.
Source: Axios
Nvidia provides up to $105 billion residual value guarantee
Nvidia will provide credit support for the land, power and shell of the facility capped at $105 billion, according to documents filed with the SEC
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. This represents a significant reduction from the $250 billion guarantee initially discussed in July5
. The arrangement functions as a residual value guarantee covering what the buildings are worth, not what OpenAI owes5
. Payment is triggered only if OpenAI defaults on a lease or becomes insolvent, and SB Energy must first attempt to relet or sell the site before Nvidia's obligation kicks in5
. OpenAI has agreed to reimburse and indemnify Nvidia for any amount the chipmaker actually pays out5
. One condition of Nvidia's obligation is that the Ohio facility will be ready to begin operating in 20282
.Jensen Huang defends deal structure amid circular financing concerns
Jensen Huang, Nvidia's chief executive, denied that the arrangement with OpenAI and SB Energy amounted to circular financing
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. He argued in a blog post on Monday that Nvidia was using its "scale and long-term visibility" to facilitate the AI data center buildout2
. "LPS [land, power and shell] has become a critical constraint on AI factory deployment," Huang said, adding that "Nvidia is selectively securing exceptional sites where we can host multiple generations of Nvidia compute and serve durable customer demand"2
. Huang emphasized that OpenAI will pay the lease, distinguishing the structure from circular arrangements4
. The deal follows last week's landmark $500 billion agreement between Nvidia and a consortium of Wall Street firms to fuel AI infrastructure development2
.
Source: New York Post
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Massive power generation and grid infrastructure investment planned
SB Energy and SoftBank will build power sources supporting 10 gigawatts of energy, including a 9.2 gigawatt natural gas power plant on the site
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. The power plant is expected to cost $33 billion, reflecting the skyrocketing costs of building natural gas power plants, which have risen 66% in the last two years according to BloombergNEF1
. The companies will invest at least $4.2 billion in grid infrastructure for the region, including 765-kilovolt transmission lines and four substations3
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. The site sits on land owned by the U.S. Department of Energy, previously used as a uranium enrichment site for the U.S. nuclear arsenal and Navy submarines1
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.Economic impact and job creation for Ohio region
OpenAI said the new data center will support 35,000 construction jobs through 2032 and 2,500 long-term operating positions
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5
. These figures represent a significant increase from earlier projections in March, which estimated more than 10,000 construction jobs over four years and more than 2,000 operating roles5
. OpenAI has committed to publishing an annual public report on hiring, water and energy use5
. The company stated that cooling will run closed-loop and air-cooled, with ongoing water use comparable to an office building, and that the project will pay transmission costs itself without shifting them onto Ohio ratepayers5
. The deal represents the latest example of how Big Tech companies including Nvidia, Google and Amazon are using their balance sheets to strike alliances with OpenAI and Anthropic, betting hundreds of billions of dollars that demand for AI services will continue to surge in the coming years2
.References
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