Nvidia Finances OpenAI's Ohio Data Center With Compute Credits
The chip giant will back up to 8 gigawatts of capacity at a Pike City facility managed by SB Energy, with first phases launching in 2028.
Nvidia announced Monday it will finance a major artificial intelligence data center for OpenAI in Pike City, Ohio, providing both credit and computing resources for the facility that represents the chip maker's latest move to secure demand for its hardware.
The arrangement covers an initial 4.25 gigawatts of computing capacity with an option for an additional 3.75 gigawatts, according to details first reported by CNBC. The capacity will come online in phases beginning in 2028.
SB Energy, a company in which OpenAI holds a stake and CEO Sam Altman invested early, will build and manage the data center at the PORTS-Pike Technology Campus through a 20-year lease to OpenAI. Nvidia will invest $1.5 billion in SB Energy as part of the deal.
Why it matters
The financing structure highlights how Nvidia is positioning itself not just as a chip supplier but as an infrastructure enabler for AI buildouts. By providing credit alongside compute resources, the company locks in long-term demand for its hardware while addressing concerns about whether AI labs can secure the capital needed for massive data center projects. The deal also intensifies scrutiny of circular financing patterns in the AI sector, where chip makers fund the customers buying their products.
Scaled back from initial discussions
The announced deal represents a reduction from earlier negotiations. CNBC had previously reported Nvidia was discussing a backstop of up to $250 billion for a 10-gigawatt data center at the Ohio location. The Wall Street Journal reported last week that Nvidia planned to cut that guarantee to less than $120 billion.
Nvidia CEO Jensen Huang framed the arrangement as securing "long-lived infrastructure for NVIDIA compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics."
Power and employment commitments
SB Energy and SoftBank will build power sources supporting 10 gigawatts of energy and invest at least $4.2 billion in grid infrastructure for the region. OpenAI said the data center will create 35,000 construction jobs through 2032 and 2,500 permanent positions.
OpenAI President Greg Brockman told CNBC that compute capacity has become a fundamental constraint for the AI industry. "Compute is really becoming the new oil, the new limited resource of the AI age," he said.
Broader financing strategy
The Ohio deal follows Nvidia's announcement last week of $500 billion in financing for customers to purchase its hardware for data center projects. These moves come as the company navigates questions about the sustainability of AI infrastructure spending and concerns about circular financing arrangements where chip makers effectively fund their own sales.
The details were first reported by CNBC.
This is an original analysis by the Omega editorial team. Source reporting: AI Watch.
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