Nvidia Injects $1.5 Billion into a Data Center Linked to OpenAI and SoftBank

In a move that reflects the growing competition over the infrastructure needed to run artificial intelligence systems, Nvidia has announced a major investment in a data center project that brings together two prominent names in this field: SoftBank and OpenAI. This step underscores the chip giant's drive to strengthen its position not merely as a processor supplier, but as a pivotal partner in building the massive digital facilities that underpin the future of technology.

Details of the New Investment

On Monday, Nvidia revealed its intention to invest around $1.5 billion in «SB Energy», a company specializing in developing data centers and power plants that is linked to both SoftBank and OpenAI. Nvidia's role is not limited to this amount alone, as the company has pledged to provide credit facilities of up to $105 billion to help finance the construction of the facility.

According to documents the company submitted to the U.S. Securities and Exchange Commission, this investment ensures that Nvidia will be the exclusive supplier of computing infrastructure at a data center named «Ports-Pike» located near the city of Cincinnati in the state of Ohio.

A Project With Massive Specifications

The center is expected to launch with an initial operating capacity of 4.25 gigawatts, later expanding to reach around 8 gigawatts. These figures reflect the enormous amount of power that modern AI centers now require, consuming as much electricity as entire cities.

Notably, the land on which the project will be built is owned by the U.S. Department of Energy and was previously a site for enriching uranium used in the American nuclear arsenal and in naval submarines, giving the project a historical dimension alongside its technical importance.

A Multi-Billion Dollar Power Plant

To supply this massive center with electricity, «SB Energy» plans to build a natural gas power plant with a capacity of 9.2 gigawatts. The cost of this plant alone is estimated to reach around $33 billion, a figure that reflects the sharp rise in the costs of building natural gas plants.

According to data from «Bloomberg New Energy Finance», the costs of constructing such plants have jumped by 66 percent in just the past two years, placing additional pressure on investors in this sector.

Energy and Price Challenges

These ambitions are not without future obstacles, as experts anticipate that once the «SB Energy» plant and other similar plants are completed, they will all compete for natural gas supplies with export markets. Analysts warn that this intersection between rising domestic demand and export demand could triple natural gas prices in some regions within the United States.

Among the most notable takeaways from this deal:

• Nvidia's transformation from merely a chip supplier into a direct investor in AI infrastructure.
• Increasing interdependence between major technology companies and the energy sector to meet the needs of computing centers.
• The rising cost of energy poses a strategic challenge to the future of AI projects.

Background of the Relationship With SoftBank

It is worth noting that SoftBank Group, one of the backers of «SB Energy» alongside OpenAI, previously held a stake in Nvidia shares worth nearly $5.8 billion, but sold these shares last November to fund other investments in the field of artificial intelligence. This overlap of interests and investments illustrates how intertwined the relationships are among the major players in this fast-growing sector.

Ultimately, this deal confirms that the AI race is no longer confined to developing models and algorithms, but has expanded to include acquiring sources of energy, land, and computing infrastructure—elements that now form the true foundation of leadership in this industry.

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