Key Highlights
- Nvidia commits up to $105B in credit backing for OpenAI’s new Pike County, Ohio data facility
- The chip manufacturer invests $1.5B directly into SB Energy, SoftBank’s development subsidiary
- Exclusive chip supply agreement positions Nvidia for $150B to $200B in hardware sales
- Facility designed for 8 gigawatt total capacity, with initial 800 megawatt phase launching in 2028
- Nvidia chip purchases from OpenAI could surpass $600B by 2030 at full site utilization
In an unprecedented infrastructure commitment, Nvidia has pledged up to $105 billion in credit guarantees to support a groundbreaking OpenAI data center complex in Pike County, Ohio. SB Energy, a SoftBank Group subsidiary, will develop, own, and manage the facility, while OpenAI has signed on as the primary tenant under a two-decade lease agreement.
Complementing the credit guarantee, Nvidia plans to inject $1.5 billion in direct equity capital into SB Energy. The arrangement designates Nvidia as the sole provider of AI computing hardware for the entire campus.
Situated at the PORTS-Pike Technology Campus in Ohio, the facility targets full operational status by 2032. The inaugural 800-megawatt phase is projected to launch in 2028.
The ambitious development will accommodate more than one million Nvidia processors, with infrastructure supporting up to 8 gigawatts of total power capacity. The opening deployment phase encompasses 4.25 gigawatts, leaving room for expansion to maximum capacity.
Should OpenAI scale operations to utilize the complete 8-gigawatt infrastructure, chip procurement from Nvidia could total approximately $600 billion through 2030. Direct hardware sales to Nvidia from this single project could generate between $150 billion and $200 billion in revenue.
Nvidia’s financial guarantee encompasses lease obligations, power contract payments, and a commitment to maintain minimum site valuation. Should OpenAI fail to meet rental obligations, Nvidia assumes responsibility for the shortfall between the guaranteed floor and actual recoverable amounts.
Nvidia Defends Against Circular Investment Criticism
CEO Jensen Huang responded to critics questioning whether the arrangement constitutes circular financingāessentially Nvidia funding its own product sales. Huang explained that Nvidia leverages “its scale and long-term visibility” to overcome infrastructure deployment bottlenecks.
“We are securing long-lived infrastructure for Nvidia compute so OpenAI can deploy the most productive AI factories,” Huang stated.
This announcement follows Nvidia‘s recent collaboration with six leading financial institutions, including BlackRock, establishing financing mechanisms designed to mobilize over $500 billion in external capital for AI infrastructure development.
Danni Hewson, head of financial analysis at AJ Bell, acknowledged that investor apprehension regarding intertwined AI investments has merit, though the concentrated nature of major industry participants makes some interconnection inevitable.
Energy Infrastructure and Employment Impact
SoftBank and SB Energy intend to construct a minimum of 10 gigawatts in new electricity generation capacity to power the campus. Additionally, they’re allocating $4.2 billion toward regional electrical grid enhancements through a collaborative arrangement with AEP Ohio.
Construction activities are forecast to generate approximately 35,000 jobs through 2032, with roughly 2,500 permanent operational positions following completion.
The initiative enjoys endorsement from the U.S. Departments of Commerce and Energy, while local resistance remains minimal due to robust state-level support tied to employment generation.
OpenAI and SoftBank have pledged $80 million toward regional community development initiatives.
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