Nvidia to invest $1.5 billion in SB Energy under OpenAI data center deal

On August 17, Nvidia announced a $1.5 billion investment in SB Energy, a SoftBank-backed firm developing AI data center infrastructure. The deal secures up to 8 gigawatts of AI computing capacity at an Ohio campus being constructed for OpenAI. This investment is part of Nvidia's strategy of financing ecosystems that consume its chips, a move that fuels demand but also raises concerns about circular fund flows from the chipmaker to its major customers.

The tech industry is increasingly collaborating on chips, power supply, and data center development as they strive to secure the necessary infrastructure for powerful AI models. Nvidia has already secured land and power for a 4.25 gigawatt AI data center at Ohio's PORTS-Pike Technology Campus, utilizing its graphics processors and networking equipment. SB Energy, backed by OpenAI, plans to build at least 10 gigawatts of new power generation and invest $4.2 billion in Ohio's grid infrastructure to support AI data centers.