Nvidia bets $1.5B on SB Energy to lock in OpenAI data center compute deal

Nvidia has announced a $1.5 billion investment in SB Energy, the data center developer backed by SoftBank and OpenAI. The move solidifies Nvidia's position as the sole supplier of compute infrastructure for OpenAI's Ports-Pike data center near Cincinnati, Ohio. The investment is part of a broader deal that includes up to $105 billion in credit to help build the facility, which could scale from an initial 4.25 gigawatts to 8 gigawatts, according to SEC filings.

SB Energy, which counts SoftBank and OpenAI as existing investors, will also build a 9.2 gigawatt natural gas power plant on the site—land owned by the U.S. Department of Energy. The site previously enriched uranium for nuclear weapons and Navy submarines. The power plant is expected to cost $33 billion, reflecting the skyrocketing costs of natural gas power plants, which have risen 66% in the last two years, according to BloombergNEF.

This investment is notable for its scale and strategic implications. By securing exclusive compute supply, Nvidia locks in a massive customer for its AI accelerators. However, the reliance on natural gas raises concerns about energy costs and competition with export markets, which could triple natural gas prices in some regions. For developers and AI companies, this signals that the infrastructure bottleneck is not just chips but power—a trend that will shape where and how AI training happens.