Nvidia has committed to providing up to $105 billion in funding and computing capacity for a new OpenAI data center located in Ohio. Initially, this facility will have a capacity of 4.25 gigawatts, with the potential to be expanded by an additional 3.75 gigawatts.
This complex will be built and managed by SB Energy at the PORTS-Pike Technology Campus in Pike City. The agreement establishes a 20-year contract with OpenAI, and the installation is expected to begin operating progressively from 2028.
This partnership represents an increase in Nvidia's involvement in expanding the essential infrastructure for artificial intelligence, fitting into a series of company actions aimed at enabling billion-dollar investments in data centers. The total project could reach a potential capacity of 8 gigawatts, with Nvidia responsible for supplying the computational resources, while SB Energy handles construction and administration.
The collaboration also covers the region's energy infrastructure. SB Energy and SoftBank plan to implement sources capable of meeting a demand of 10 gigawatts, allocating at least $4.2 billion to strengthen the local power grid. Additionally, Nvidia will contribute $1.5 billion to SB Energy.
The relationship between the corporations is also mediated by OpenAI itself, which holds a stake in SB Energy, and whose CEO, Sam Altman, was one of the initial investors in the company.
For Nvidia, this agreement reinforces its focus on creating long-term infrastructure for its computing systems. Jensen Huang, the company's CEO, stated in a release that the new facility will allow OpenAI to continuously update its capacity as new generations of technology are released.
The commitment announced on Monday (17th) is lower than the previously discussed amount of up to $250 billion between Nvidia and OpenAI. The initial proposal provided a guarantee for OpenAI to obtain loans intended for a 10-gigawatt data center in Ohio.
This reduction had already been reported by The Wall Street Journal, which indicated the previous week that the guarantee could fall below $120 billion; the current agreement updates this limit to $105 billion.
This move comes as Nvidia intensifies its role in financing the expansion of AI data centers. Last week, the company partnered with six major asset managers to structure mechanisms aimed at mobilizing $500 billion in third-party capital for industry projects.
The model adopted in the Ohio agreement also reignites debates about so-called circular financing in the artificial intelligence market, an issue raised due to the growing mutual dependence between companies that provide technology, capital, and infrastructure to the sector.
According to OpenAI, the construction of the undertaking is expected to create 35,000 jobs during the construction phase until 2032, and after completion, the complex is expected to maintain 2,500 permanent positions.
The magnitude of the project is intrinsically linked to the need for greater availability of computational power for advanced artificial intelligence systems. Greg Brockman, President of OpenAI, informed CNBC during the program 'Squawk Box' that computational capacity has become a vital resource for the industry.
Thus, the expansion in Ohio transcends merely the physical construction of a new data center, as the venture consolidates funding, chips, processing capacity, energy generation, and power grid reinforcement into a single operation, broadening OpenAI's access to the high-performance computing resources necessary for its systems.