Nvidia has committed up to $105 billion in guarantees to support OpenAI’s leasing of a large-scale data center in Ohio powered by SoftBank-owned SB Energy, marking one of the largest infrastructure financing deals in the AI chip sector.
- Nvidia guarantees up to $105 billion to support OpenAI’s Ohio data center lease.
- Facility will feature up to 8 gigawatts capacity, with initial operations targeted for 2028.
- Project includes $1.5 billion investment in SB Energy and future power grid upgrades.
What happened
Nvidia has agreed to provide a guarantee of up to $105 billion to back OpenAI’s lease of a new, expansive data center in Pike County, Ohio. The facility, developed by SB Energy, part of SoftBank, will serve as exclusive home to Nvidia’s AI chips with an ultimate capacity of 8 gigawatts, aiming to start operations with 800 megawatts online by 2028. This deal follows recent major investments from OpenAI and SoftBank in the same infrastructure project, reinforcing a growing financing partnership among these key players.
In addition to the guarantee backing lease and power payments, Nvidia is investing $1.5 billion directly in SB Energy. The company emphasized that this arrangement is not circular financing but a strategic use of its scale and visibility to secure long-term infrastructure for AI compute. OpenAI will lease the site for 20 years under terms that assign funding risk to Nvidia only if OpenAI defaults and the asset value cannot be recovered.
Why it matters
The deal highlights Nvidia’s expanding role beyond chip manufacturing into financing and infrastructure development for AI data centers. This approach helps ensure steady demand for Nvidia’s chips while addressing growing challenges for data centers, including securing land and power amid strained US grids and local opposition to new facilities. By guaranteeing vital infrastructure, Nvidia positions itself to benefit from the accelerating AI compute demand projected through 2030 and beyond.
Nvidia’s plan to lock down key sites where its technology can operate for multiple AI chip generations provides it with a competitive advantage. The Ohio center alone could contribute up to $200 billion in revenue for Nvidia, with estimates of total revenue from OpenAI data centers potentially reaching $600 billion by 2030. The project will also boost local economies through large-scale construction and permanent job creation.
What to watch next
Key developments to monitor include the construction timeline of the Power Site in Ohio, with the first 800 megawatts expected by 2028 and ongoing expansions thereafter. The integration of new power generation and regional grid upgrades by SoftBank and partners like AEP Ohio will be critical to meeting the massive electrical demands. Attention will also focus on the financial dynamics of Nvidia’s guarantee and its impact on future AI infrastructure deals involving third-party funding partnerships with major financial institutions.
Additionally, industry observers should track how effectively these large investments translate into returns for Nvidia and its partners amid scrutiny over circular financing concerns. The durability and economic viability of these AI factories will set precedents for future large-scale infrastructure projects vital to sustaining rapid AI innovation and deployment.