Nvidia is set to invest up to $3bn in SoftBank Group subsidiary SB Energy, for a planned data centre development in Ohio dedicated to OpenAI, according to people familiar with the discussions, reported Reuters.
The proposed investment forms part of broader talks between Nvidia, SB Energy, and OpenAI concerning substantial credit support, estimated around $100bn, for the new data centre campus, the report stated.
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Details discussed include the possibility that Nvidia could provide half of the $3bn investment when the deal for the Ohio site is concluded, while the remaining half could be contributed as part of SB Energy’s anticipated initial public offering (IPO).
SB Energy aims to go public as early as next month and could raise at least $5bn through the IPO.
Nvidia is also amending its approach to supporting the Ohio data centre project, initially planning to guarantee under $120bn, a decrease from the $250bn sum previously considered, reported The Wall Street Journal.
This change is reportedly intended to address concerns among investors about Nvidia’s exposure to financial risk associated with the large-scale build-out.
Under the revised plans, Nvidia would provide financial backing for the first project phase, which covers about 5GW of power, with the option to decide on funding the remainder at a later stage.
OpenAI, which is also supporting SB Energy, is continuing negotiations to sign a binding lease for the 10GW campus.
The purpose of Nvidia’s proposed guarantee is to secure the data centre lease and loan facilities needed for construction, potentially lowering borrowing costs for the project’s development.
Goldman Sachs is serving as an advisor to SB Energy, while Morgan Stanley is advising Nvidia on the deal.
Prior to this, Nvidia announced new alliances with six global financial institutions, aiming to establish independent financing platforms to support the expansion of AI infrastructure.
