Nvidia Guarantees $105 Billion for Ohio Data Center to Support OpenAI
On August 17, Nvidia (NASDAQ:NVDA) agreed to guarantee up to $105 billion in financing to help OpenAI lease a large data center being developed by SB Energy in Pike County, Ohio. The facility is expected to reach an 8 gigawatt capacity with the first phase operational by 2028 and will use Nvidia chips exclusively. In addition, Nvidia has committed $1.5 billion directly into SB Energy. This move aligns with a broader strategy where Nvidia finances infrastructure that supports its own chip ecosystem, expanding even as it faces scrutiny over circular financing practices. The Ohio project is part of an ongoing effort to secure long-term sites for AI compute and lock in customers across multiple hardware generations. This follows the formation of a $500 billion consortium with major financial institutions earlier in the week. While proponents argue that this strategy helps Nvidia maintain dominance as demand surges, critics highlight concerns about circularity—whereby the company funds its own ecosystem's growth. Despite these risks, institutional ownership and low short interest suggest strong confidence among investors.
Topics: artificial intelligence data centers Nvidia OpenAI SB Energy