Nvidia has agreed to provide a guarantee of up to $105 billion to support OpenAI’s lease of a massive data center in Ohio, which SoftBank-owned SB Energy is developing as part of one of Nvidia’s largest infrastructure financing commitments.
The Jensen Huang-led firm stated on Monday that it will invest $1.5 billion in SB Energy, following a $1 billion investment from OpenAI and SoftBank to expand data center infrastructure and support the growing demand for artificial intelligence computing.
The latest agreement represents another major step in Nvidia’s strategy of financing infrastructure built around its chips, supporting future demand while raising concerns about potentially circular funding relationships between the chipmaker and its customers.
Nvidia CEO Jensen Huang rejected concerns about circular financing, arguing that the company is using its scale and long-term visibility to secure infrastructure capable of supporting OpenAI’s expanding computing requirements.
Nvidia will serve as the exclusive chip supplier for the Pike County, Ohio, facility, which could eventually reach a total capacity of eight gigawatts, while the first 800 megawatts are expected to become operational in 2028.
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OpenAI has agreed to lease the facility for 20 years, although people familiar with the matter said the financing structure has not yet been finalized and is expected to include an equity component.
The equity financing could potentially include funds raised through a future SB Energy initial public offering, alongside direct investment from SoftBank, while the remaining financing is expected to come through debt.
Nvidia explained that its guarantee will cover part of the lease and power payments while ensuring that the facility maintains a specified minimum value, rather than covering the project’s entire cost or all of OpenAI’s financial obligations.
OpenAI will remain responsible for paying the facility’s rent, but if the company defaults, Nvidia will cover the difference between the guaranteed minimum value and the amount the facility owner can recover through leasing or selling the site.
Huang said the Ohio facility, which is expected to begin with approximately 4.25 gigawatts of capacity, could generate as much as $200 billion in revenue for Nvidia through the sale of computing infrastructure.
Overall, Nvidia could generate approximately $600 billion in revenue from OpenAI by 2030 by supplying 16 gigawatts of computing capacity, including a planned 3.75-gigawatt expansion of the Ohio facility.
To support the project, SoftBank and SB Energy plan to develop at least 10 gigawatts of new power generation while investing approximately $4.2 billion in regional grid infrastructure through a partnership with AEP Ohio.
The development is expected to create roughly 35,000 construction jobs through 2032, while approximately 2,500 permanent jobs are projected to support the facility’s long-term operations, according to OpenAI.
OpenAI and SoftBank have also committed $80 million toward community projects, while the development involves federal land and has received participation from the U.S. Departments of Commerce and Energy.
Overall, the Ohio project highlights Nvidia’s growing role in financing the infrastructure required to expand AI computing, while strengthening the company’s long-term relationship with OpenAI.
