2 weeks ago
Nvidia plans $3 billion SB Energy investment for OpenAI
Nvidia makes special computer chips that help computers learn, which people call artificial intelligence, or AI.
Nvidia wants to help pay for giant buildings full of computers, called data centres, being built in the US state of Ohio.
The buildings are being built by SB Energy, a company owned by a big Japanese business group called SoftBank.
SB Energy is building the project for OpenAI, the company that created ChatGPT.
Nvidia plans to give about three billion dollars to help pay for the project.
It is also promising around 100 billion dollars of credit support so lenders feel safe lending money.
At first, Nvidia will only back the part of the project that uses about five gigawatts of power.
OpenAI wants to rent space for ten gigawatts, which could make it the biggest data centre project ever announced.
The deal might be signed as soon as this weekend.
Companies are joining together like this because AI needs a lot of power and computer chips.
Nvidia is in talks to invest roughly $3 billion in SB Energy, a SoftBank Group subsidiary developing a massive data centre project in Ohio for OpenAI, The Information reported on Saturday.
Nvidia is also discussing about $100 billion in credit support for the planned Ohio campus with OpenAI and SB Energy.
Nvidia scaled back its planned initial financial guarantee for the project from $250 billion to less than $120 billion, The Wall Street Journal reported, to ease investor concerns about risk exposure.
The first phase Nvidia would back involves about five gigawatts of power, while OpenAI is negotiating a binding lease for 10 gigawatts, potentially the largest data centre project announced to date.
Half of the $3 billion would be invested once the project is signed and the other half as part of SB Energy's IPO, expected as soon as next month to raise at least $5 billion; Reuters could not immediately verify the reports.
- Who
- Nvidia, led by Jensen Huang; OpenAI; and SB Energy, a SoftBank Group subsidiary.
- What
- Nvidia plans to invest roughly $3 billion in SB Energy and provide about $100 billion in credit support for a massive AI data centre campus in Ohio being developed for OpenAI.
- Where
- Ohio, United States.
- When
- Reported by The Information on Saturday, following a Friday Wall Street Journal report; a deal could be signed as soon as the weekend.
- Why
- To finance AI data centre infrastructure amid growing demand for AI workloads and Nvidia chips.
Key facts
- Proposed investment
- Roughly $3 billion in SB Energy
- Credit support
- About $100 billion (in talks with OpenAI and SB Energy)
- Initial financial guarantee
- Reduced from $250 billion to less than $120 billion
- First-phase power
- About 5 gigawatts (GW)
- Total planned capacity
- 10 GW - potentially the largest data centre project announced to date
- SB Energy IPO
- As soon as next month; expected to raise at least $5 billion
- Chip financing talks
- Up to $350 billion for the entire project
- Deal signing
- Expected as soon as the weekend
Sources
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