TLDR
- Nvidia has agreed to provide up to $105B in credit support for a new OpenAI data center in Pike County, Ohio
- Nvidia will also make a $1.5B direct equity investment in SB Energy, the SoftBank subsidiary developing the site
- Nvidia will be the exclusive chip supplier for the facility, with potential hardware revenue of $150B to $200B
- The Ohio campus will have a total capacity of 8 gigawatts, with first 800 megawatts expected online in 2028
- OpenAI spending on Nvidia chips could reach $600B by 2030 if the site expands to full capacity
Nvidia has agreed to backstop a massive new OpenAI data center campus in Pike County, Ohio, with a credit guarantee of up to $105 billion. The facility is being developed, owned, and operated by SB Energy, a subsidiary of SoftBank Group, with OpenAI signing a 20-year lease as the anchor tenant.
As part of the deal, Nvidia will make a $1.5 billion direct equity investment in SB Energy. Nvidia will also serve as the exclusive supplier of AI computing systems for the site.
The Ohio campus is located at the PORTS-Pike Technology Campus. It is planned for full completion by 2032, with the first 800 megawatts of capacity scheduled to come online in 2028.
The site is designed to house over one million Nvidia chips and carry a total capacity of up to 8 gigawatts. The initial phase covers 4.25 gigawatts, with the potential to expand to the full 8 gigawatts.
If OpenAI expands to full capacity, its spending on Nvidia chips could reach up to $600 billion by 2030. Hardware revenue to Nvidia from the facility alone could hit between $150 billion and $200 billion.
Nvidia’s guarantee covers a portion of the lease and power payments, as well as a commitment to ensure the site holds a minimum value. If OpenAI defaults on rent, Nvidia would cover the gap between the guaranteed minimum and whatever the owner can recover.
Nvidia Pushes Back on Circular Financing Concerns
CEO Jensen Huang addressed criticism that the deal represents circular financing, where Nvidia effectively funds its own chip sales. Huang said Nvidia is using “its scale and long-term visibility” to resolve infrastructure deployment constraints.
“We are securing long-lived infrastructure for Nvidia compute so OpenAI can deploy the most productive AI factories,” Huang said.
The deal comes shortly after Nvidia partnered with six major financial institutions, including BlackRock, to launch financing platforms targeting more than $500 billion in third-party funding for AI infrastructure.
Danni Hewson, head of financial analysis at AJ Bell, noted that while investor concern about circular AI deals is valid, the limited number of major players makes some degree of overlap unavoidable.
Power and Jobs
To support the site, SoftBank and SB Energy plan to build at least 10 gigawatts of new power generation. They will also invest $4.2 billion in new regional grid infrastructure through a partnership with AEP Ohio.
The project is expected to create around 35,000 construction jobs through 2032 and approximately 2,500 long-term operating jobs.
The deal has backing from the U.S. Departments of Commerce and Energy, and local opposition is considered low given strong state support tied to job creation.
OpenAI and SoftBank have also committed $80 million to community projects in the region.
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