Nvidia will invest $1.5 billion in SoftBank-backed SB Energy as part of a deal that will provide the chipmaker with access to up to 8 gigawatts of AI computing capacity at an Ohio data centre being developed for OpenAI, according to Reuters.
The deal is the latest example of Nvidia financing infrastructure that uses its processors, a strategy that can help drive demand for its chips but has also raised questions about the flow of money between the chipmaker and its largest customers.
As technology companies compete to secure the infrastructure needed to power increasingly energy-intensive AI models, chips, electricity and data centre development are becoming increasingly interconnected, Reuters reported.
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At the PORTS-Pike Technology Campus in Ohio, Nvidia has secured land and power for an AI data centre that will use its graphics processors and networking equipment. The facility is expected to have an initial capacity of 4.25 gigawatts, according to Reuters.
SB Energy and SoftBank plan to invest $4.2 billion in regional power infrastructure and develop at least 10 gigawatts of new power capacity to support AI data centres.
SB Energy, which was founded in 2019, develops large-scale power and data centre infrastructure projects. The company is also working with OpenAI on data centre sites as demand for computing capacity grows.
The deal comes amid growing scrutiny over financing arrangements in the AI infrastructure industry. Nvidia has increasingly used investments, partnerships and financing commitments to support the expansion of data centres that, in turn, require its chips.
The Ohio facility is expected to support around 2,500 long-term jobs and 35,000 additional construction jobs through 2032, according to OpenAI.
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OpenAI President Greg Brockman said on CNBC's Squawk Box on Monday that computing is a "fundamental resource" for the AI industry.
The latest agreement highlights how AI companies and their suppliers are increasingly tying together chip supply, power generation and data centre construction as they race to expand computing capacity.
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