NVIDIA Plans $3 Billion Investment in SoftBank Group Corp.'s SB Energy, Betting on OpenAI Ohio Data Center Project

NVIDIA is deeply embedding its financial resources into the AI infrastructure construction chain, with its latest target being SB Energy, a subsidiary of SoftBank Group Corp.

On August 15, according to a report by The Information, NVIDIA is in negotiations with SB Energy to invest up to $3 billion. SB Energy, a subsidiary of SoftBank Group Corp., is leading the development of a large-scale data center project in Ohio for OpenAI. Neither NVIDIA nor SB Energy commented on the matter.

This investment is part of a broader negotiation framework. According to insiders, NVIDIA is in discussions with OpenAI and SB Energy to provide approximately $100 billion in credit support for the Ohio data center campus, with the $3 billion equity investment nested within this structure.

Two-Step Approach: Half at Signing, Half at IPO

According to The Information, citing sources familiar with the matter, NVIDIA plans to invest $1.5 billion when the Ohio project agreement is signed, and another $1.5 billion will follow during SB Energy's IPO.

SB Energy could launch its IPO as early as next month, aiming to raise at least $5 billion. If NVIDIA injects $1.5 billion at that time, it will become one of the largest investors in this IPO.

However, insiders also cautioned that negotiations are ongoing, the investment scale may shrink, and the deal is not yet finalized. SB Energy may also delay its listing and seek a higher fundraising amount in the IPO.

Ohio Project: $500 Billion Scale, SB Energy as the Operator

Controlled by SoftBank Group Corp., SB Energy is the lead developer of the Ohio data center project. Located in southern Ohio, the project is expected to add 10 gigawatts of power generation capacity. Based on current costs for hardware, labor, electricity, and other factors, the total development cost is estimated at approximately $500 billion.

OpenAI will use this data center and purchase NVIDIA chips—this is the core logic behind NVIDIA's involvement and commitment to provide approximately $100 billion in credit support: helping OpenAI finance the project construction while locking in demand for its own chips.

Founded in 2019, SB Energy has its roots in renewable energy power generation and has relatively limited experience in data center development. To address this shortfall, the company acquired Studio 151, which specializes in data center construction management, engineering, and operations, at the end of 2025.

Additionally, SB Energy is developing a 1.2-gigawatt data center project for Oracle and OpenAI in Milam County, Texas, and advancing solar and energy storage projects in Texas, California, and other locations. In January this year, OpenAI invested $500 million in SB Energy for the Milam County project.

NVIDIA's "Ecosystem Investment" Logic and Controversy Over Circular Financing

In recent years, NVIDIA has continuously injected capital into the AI ecosystem chain, following a consistent logic: investing in customers to lower the threshold for purchasing and using NVIDIA hardware, thereby driving chip demand.

Since the beginning of this year, NVIDIA has invested $2 billion each in cloud service providers CoreWeave and Nebius, $30 billion in OpenAI, and committed to investing $2 billion in power infrastructure developer Lancium (with an additional $1 billion conditional commitment).

However, this model is raising concerns in the market. According to reports, a credit executive familiar with the Ohio negotiations bluntly stated that NVIDIA's direct investment in customers or commitment to repurchase unsold capacity from customers is "something no one is particularly excited about anymore." Another credit executive involved in NVIDIA's AI infrastructure transactions noted that some private credit firms are cautious about lending directly to OpenAI.

In response, NVIDIA announced on Monday that it has established partnerships with six major Wall Street institutions to raise $500 billion in independent financing to help customers purchase NVIDIA hardware. In a blog post, NVIDIA emphasized that these funds are "non-NVIDIA capital" and require independent underwriting, aiming to address external concerns about circular financing.

Notably, according to a Friday report by The Wall Street Journal, NVIDIA has adjusted its support plan for the Ohio project, with the initial guarantee scale expected to be less than $120 billion, lower than the previously discussed $250 billion.