Nvidia to invest $3 billion in SoftBank’s SB Energy

Nvidia is in talks to invest roughly $3 billion in SB Energy, a SoftBank subsidiary building a massive data centre in Ohio for OpenAI, The Information reported. The chipmaker plans to put half the amount once the project is signed and the rest as part of SB Energy's upcoming IPO, which could raise up to $7 billion, according to Hindustan Times.

OpenAI has signed a 20-year lease for the 10-gigawatt campus, partly on a former uranium-enrichment site owned by the US Department of Energy. Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright have been deeply involved in the project, Hindustan Times reported. Nvidia will backstop a portion of the completed data centre's value, starting with the first 5 GW phase, and be the exclusive chip provider for that phase in return for an equity stake in SB Energy.

The Hindustan Times reports Nvidia's commitment is structured to require mitigation steps before the chipmaker makes any payments. If OpenAI walks away, SB Energy would first try to re-lease the site, then sell it, and Nvidia would pay any difference up to $105 billion if the initial phase is completed. Nvidia shares fell 5% in late July after earlier reports of the guarantee talks.