Jensen Huang-led US chipmaker Nvidia is in talks to invest roughly $3 billion in SB Energy, a subsidiary of SoftBank Group that is developing a massive data centre project in Ohio for OpenAI, The Information reported on Saturday, citing people familiar with the discussions.
The proposed investment comes as Nvidia is also in talks with OpenAI and SB Energy about providing around $100 billion in credit support for the planned data centre campus in Ohio.
The chipmaker plans to invest half of the $3 billion once the Ohio project is signed and the other half as part of SB Energy's planned initial public offering (IPO), which could take place as soon as next month and is expected to raise $5 billion.
Backed by OpenAI, SB Energy develops large-scale power and data centre infrastructure projects. Founded in 2019, the company is building several data centre campuses to support the growing demand tied to artificial intelligence (AI) workloads.
The latest development comes after Nvidia reportedly scaled back its planned financial support for the Ohio data centre project. The Wall Street Journal on Friday (local time) reported that Nvidia and OpenAI are in the final stages of a deal to finance a large-scale data centre campus in Ohio, but have restructured the agreement so that Nvidia would initially guarantee only half of the project's planned multi-hundred-billion-dollar cost.
Under the revised plan, Nvidia's initial financial guarantee would be reduced from the previously discussed $250 billion to less than $120 billion, in a move aimed at easing investors' concerns over the company's exposure to risk as it uses its balance sheet to support demand for its artificial intelligence chips. A deal is expected to be signed as soon as the weekend, the report added.
Under the proposed arrangement, Nvidia would financially back the project's first phase, which would involve about five gigawatts (GW) of power. The chipmaker would then decide whether and how to fund the remaining capacity. OpenAI is still negotiating a binding lease for 10 gigawatts (GW) of the project, which could be signed in the coming days.
SB Energy is reportedly developing the 10-GW site, which could become the largest data centre project announced to date.
The initial guarantee would cover the data centre lease and the debt needed to build the project. It would also help reduce borrowing costs by giving lenders greater confidence that the project has secure financial backing.
Separately, the chipmaker is also in talks for a deal to finance OpenAI's purchase of chips, which could be worth up to $350 billion for the entire project. The US government controls the power supply for the project, while Japan is providing separate funding under a recent trade agreement.
The current financing talks come after an earlier partnership between Nvidia and OpenAI encountered delays. In September last year, the companies signed a memorandum of understanding (MoU) under which Nvidia would help develop at least 10 GW of computing capacity for OpenAI and invest up to $100 billion to support the project. However, the agreement later stalled amid concerns raised by several Nvidia officials.
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br>
Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br>
At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br>
She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br>
Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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