TLDR
- SoftBank will invest up to $3 billion to convert an Ohio electric vehicle plant into a manufacturing facility for OpenAI data center equipment
- The Japanese company bought the Lordstown site in August 2024 for $375 million after selling its $5.8 billion Nvidia stake
- The factory will produce modular data centers for locations including Milam County, Texas, with production starting in early 2026
- This investment is part of the $500 billion Stargate project announced in September by OpenAI, Oracle, and SoftBank
- SoftBank previously committed $18 billion to AI ventures in a joint venture announced at the White House in January
SoftBank plans to invest up to $3 billion to transform a former electric vehicle facility in Lordstown, Ohio into a manufacturing plant for OpenAI data center equipment. The Information reported the news on Thursday.
The Japanese technology company purchased the Lordstown site in August for $375 million. The facility will be converted to produce equipment for data centers in Milam County, Texas and other locations across the United States.
SoftBank sold its $5.8 billion stake in Nvidia earlier this year to fund CEO Masayoshi Son’s artificial intelligence initiatives. The company has focused its investment strategy on OpenAI, the company behind ChatGPT.
The Ohio investment represents part of SoftBank’s larger commitment to AI infrastructure. In January, the company pledged $18 billion in a joint venture announced at the White House.
The factory will specialize in building modular data centers. These are portable, pre-assembled units that allow for faster deployment compared to traditional data center construction.
The modular approach enables companies to scale their computing capacity more quickly. The facility will include a small working data center that will serve as a demonstration model for potential customers.
Data Center Manufacturing Plans
Manufacturing of the modular data center units is expected to begin in early 2026. The Ohio facility will support OpenAI’s growing infrastructure needs as the company expands its operations.
In September, OpenAI announced plans with Oracle and SoftBank to build five U.S. AI data centers. This announcement was part of the $500 billion Stargate project.
The Stargate project aims to create a nationwide network of advanced AI infrastructure. The project represents one of the largest planned investments in AI computing infrastructure to date.
OpenAI CEO Sam Altman discussed the company’s computing needs during an October livestream. He said OpenAI aims to build 30 gigawatts of computing capacity.
OpenAI’s Infrastructure Costs
Altman estimated the cost of reaching that capacity at $1.4 trillion. The company plans to eventually scale to adding about 1 gigawatt of capacity per week.
Current costs for building data center capacity run above $40 billion per gigawatt. OpenAI faces higher costs than some competitors because it lacks revenue from advertising or cloud services.
Companies like Meta and Google operate advertising businesses that help offset their infrastructure costs. OpenAI must rely primarily on its API services and ChatGPT subscriptions.
SoftBank and OpenAI did not respond to requests for comment from Reuters. The companies have not provided additional details about the Ohio facility’s planned capacity or workforce.
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