Nvidia Corp (NASDAQ: NVDA) has confirmed a $1.5 billion investment in SB Energy, a subsidiary of SoftBank Group Corp, to secure exclusive AI compute infrastructure at the PORTS-Pike Technology Campus in Pike County, Ohio. The deal establishes Nvidia as the sole AI compute provider at the site, with OpenAI designated as the customer for the full 8 IT-GW of planned capacity.

The investment marks a strategic shift from earlier reports of a potential $3 billion stake tied to an IPO. Nvidia is providing the full $1.5 billion upfront to support SB Energy’s growth and community commitments, rather than linking the remainder to a public listing. The partnership secures land, power, and shell (LPS) capacity for Nvidia’s DSX AI factory platform.

Deal Structure and Capacity

SB Energy will build, own, and operate the data center under a 20-year lease to OpenAI. The initial deployment supports 4.25 IT-GW of AI factory capacity, with Nvidia holding an option to extend the opportunity to cover the remaining 3.75 IT-GW. The campus is being developed on private and federal land, including the decommissioned Portsmouth Gaseous Diffusion Plant, with capacity expected to come online in phases beginning in 2028.

Revised Financing Structure

Separately, Nvidia and OpenAI are nearing a financing agreement for the Ohio campus that would reduce Nvidia’s initial financial guarantee. According to reports, the revised structure would cut Nvidia’s potential guarantee from $250 billion to less than $120 billion, with Nvidia initially backing only about half of the planned buildout.

The companies reworked the structure after investors raised concerns about Nvidia using its balance sheet to support infrastructure spending that ultimately drives demand for its chips. This adjustment aims to limit initial exposure while pursuing a computing opportunity estimated at hundreds of billions of dollars through 2030.

Revenue Opportunity and Long-Term Outlook

OpenAI has committed to substantial Nvidia infrastructure deployments through 2030, representing about 12 gigawatts of Nvidia computing capacity. That could increase to roughly 16 gigawatts if Nvidia exercises its option for additional PORTS-Pike capacity. At that scale, Nvidia estimates the OpenAI opportunity could represent about $600 billion of computing systems through 2030.

Nvidia expects the long-lived site to support repeated hardware upgrades. The company estimates that each generation of systems deployed at PORTS-Pike could involve about 1.5 million Nvidia GPUs and represent roughly $150 billion to $200 billion of Nvidia revenue. CEO Jensen Huang stated that AI is becoming infrastructure, making land, power, and shell vital in the age of AI.

Community and Infrastructure Impact

The project aims to reindustrialize Southern Ohio, creating tens of thousands of jobs. SB Energy and SoftBank will build at least 10 GW of new energy generation and invest $4.2 billion in regional grid infrastructure through a partnership with AEP Ohio. OpenAI has agreed to contribute an incremental $40 million to SB Energy’s original $40 million community benefits fund, totaling $80 million for local priorities such as affordable energy and workforce development.

What the Numbers Show

The reduction of Nvidia’s financial guarantee from $250 billion to under $120 billion signals a recalibration of risk management amidst investor scrutiny over balance sheet exposure. While the upfront $1.5 billion investment secures immediate LPS capacity, the revised guarantee structure suggests a more conservative approach to funding the broader $600 billion revenue opportunity through 2030. This balances the aggressive pursuit of infrastructure dominance with financial prudence regarding long-term capital commitments.

Goldman Sachs and JP Morgan served as financial advisors for SB Energy, while Morgan Stanley advised Nvidia. Nvidia shares rose 0.40% to $226.04 on Monday.

Nvidia announced plans to invest $100 billion in a new data centre facility located in Ohio, specifically designed to support the operations of OpenAI. The investment represents a significant commitment to expanding the physical infrastructure necessary for large-scale artificial intelligence training and inference.

The project highlights the intensifying competition among technology firms to secure and build out the computational resources required for next-generation AI models. By locating the facility in Ohio, Nvidia aims to leverage regional advantages while meeting the specific technical requirements of its partnership with OpenAI.

Infrastructure Expansion

The scale of the $100 billion investment indicates a long-term strategic focus on AI hardware deployment. Such capital expenditure is typically directed towards constructing high-density server farms, advanced cooling systems, and robust power distribution networks essential for operating thousands of GPUs simultaneously.

This development aligns with broader industry trends where semiconductor manufacturers are increasingly involved in the end-to-end deployment of AI infrastructure, moving beyond chip sales to integrated solutions.