Nvidia eyes $3B investment in SB Energy amid rumored OpenAI collaboration

US chipmaker Nvidia, led by CEO Jensen Huang, is reportedly in advanced talks to invest approximately $3 billion in SB Energy, a subsidiary of SoftBank Group, according to sources cited by The Information on Saturday. The investment is linked to SB Energy’s development of a large-scale data center project in Ohio intended to support OpenAI’s growing artificial intelligence workloads. The discussions highlight Nvidia’s increasing involvement in infrastructure to meet soaring demand for its chips, as generative AI applications drive unprecedented requirements for computing power.

As part of the proposed arrangement, Nvidia is expected to invest half of the $3 billion once the Ohio data center project reaches a formal agreement, with the remainder tied to SB Energy’s anticipated initial public offering, which could take place as early as next month. The IPO is projected to raise $5 billion. SB Energy, established in 2019 and backed by OpenAI, specializes in building large-scale power and data center infrastructure for next-generation technology companies.

The talks come amid broader negotiations involving Nvidia, OpenAI, and SB Energy over roughly $100 billion in credit support to help finance the massive data center campus in Ohio. According to reporting by The Wall Street Journal, Nvidia and OpenAI are in the final stages of structuring a deal to back the project but are revising their prior commitments to reduce financial exposure and investor concerns. While Nvidia had initially discussed providing a $250 billion guarantee for the project, the current plan is for an initial commitment of less than $120 billion. This move is intended to address risk and balance sheet constraints, ensuring more measured financial support as the project gets underway.

Under the updated proposal, Nvidia would guarantee financing for the project’s first phase, encompassing about five gigawatts of power. The company would then have the option to reassess its involvement and funding for subsequent phases. OpenAI is still in negotiations over a binding lease to secure 10 gigawatts of capacity at the site, with a final agreement possible in the coming days. SB Energy’s development of the 10-gigawatt Ohio campus would make it one of the largest data center projects ever announced.

The initial guarantee by Nvidia would be directed toward securing the data center lease and enabling the debt needed to construct the facility, providing lenders with increased confidence and potentially lowering borrowing costs by ensuring robust financial backing. Nvidia is simultaneously exploring a separate arrangement to finance OpenAI’s purchase of AI chips for the project, which could be valued at up to $350 billion.

US government authorities are overseeing the power supply for the Ohio data center, while separate funding from Japan is being provided as part of a recent trade agreement. The current round of talks follows a previous memorandum of understanding signed in September last year, in which Nvidia agreed to help develop at least 10 gigawatts of computing capacity and potentially invest up to $100 billion. That earlier deal stalled amid internal concerns within Nvidia.

A deal between Nvidia, SB Energy, and OpenAI could be signed as soon as this weekend, according to sources familiar with the negotiations. If finalized, it would mark a significant step forward in the construction of next-generation infrastructure to power the AI revolution, while also underscoring Nvidia’s growing influence in not just chip design but the broader AI ecosystem.