Nvidia, Open AI, and SB Energy are partnering up to build a massive data center in Ohio.
Nvidia will chip in $105 billion for financing. The plan is for the facility to offer 4.25 gigawatts of computing capacity with the option to expand that by another 3.75 gigawatts in the future.
SB Energy is responsibly for building the site and will be the owner of it, which OpenAI will lease for 20 years. Nvidia will also be investing $1.5 billion in SB Energy.
The complex, known as the PORTS-Pike Technology Campus, will exclusively use Nvidia GPUs, which the company predicts could amount to approximately 1.5 million chips, or $150-$200 billion in potential revenue per generation deployed at the site through 2030.
This new deal and Nvidia’s prior agreements with OpenAI could total as much as $600 billion for the company.
Nvidia CEO Jensen Huang fought off claims of the deal being circular investing, in which a company invests in a customer, who then uses that money to purchase equipment from the investing partner, as many AI deals being this way, raising concerns about inflated numbers.
“Nvidia uses its scale and long-term visibility to secure PORTS-Pike to host Nvidia compute,” Huang wrote.
“This is the same discipline we apply to supply-chain management: we secure critical inputs when we have visibility into customer demand and when doing so enables long-term productive capacity,” he added.
Huang also noted that Nvidia will only be paying for portions of lease and power payments, not the full cost of the campus or OpenAI’s obligations.
Nvidia is making deals and been pouring money into its capex, investing in likes of Ilya Sutskever’s Safe Superintelligence, SK Hynix, and setting up a $500 billion fund alongside Wall Street powerhouses, including BlackRock, Blackstone, Goldman Sachs, and Apollo Global Management, to allow data center builders to finance the purchase of Nvidia chips.
