Thursday, August 27, 2026
Tech Beat
Aug 17, 2026, 3:16 PMArtificial Intelligence

Nvidia Invests $1.5B in SB Energy, Secures OpenAI Ohio Data Center Deal

Nvidia will invest $1.5 billion in SB Energy, securing OpenAI's Ohio data center while offering up to $105 billion in credit to build the Ohio project.

A giant silicon chip furnace consumes banknotes and natural gas, symbolizing the costly expansion of AI infrastructure.
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Summary

On Monday, August 17, 2026, Nvidia said it will invest $1.5 billion in SB Energy, the data center and power developer linked to SoftBank and OpenAI. The deal makes Nvidia the sole compute infrastructure supplier for OpenAI’s Ports-Pike data center near Cincinnati, Ohio, and includes up to $105 billion in Nvidia credit for construction, according to SEC filings. Ports-Pike is planned to grow from an initial 4.25 gigawatts to 8 gigawatts. SoftBank and OpenAI already invest in SB Energy. SoftBank sold $5.8 billion of Nvidia stock in November to finance other AI investments.

SB Energy will build a 9.2 gigawatt natural gas power plant at the site, on U.S. Department of Energy land formerly used to enrich uranium for the U.S. nuclear arsenal and Navy submarines. The plant is expected to cost $33 billion, reflecting a 66% rise in natural gas plant construction costs over two years, according to BloombergNEF. Once it and other plants are completed, competition with export markets for gas could triple prices in some parts of the country.

Positives

  • Nvidia’s $1.5 billion investment secures its role as sole compute infrastructure supplier for OpenAI’s Ports-Pike site.
  • Up to $105 billion in Nvidia credit could support construction of the Ohio facility.
  • Ports-Pike can scale from an initial 4.25 gigawatts to 8 gigawatts.
  • SoftBank and OpenAI already invest in SB Energy, aligning the developer with two major AI backers.

Risks & concerns

  • SB Energy’s 9.2 gigawatt gas plant is expected to cost $33 billion after construction costs rose 66% in two years.
  • New power plants will compete with export markets for natural gas, potentially tripling prices in some U.S. regions.
  • Ports-Pike’s planned 8 gigawatts of compute requires a larger 9.2 gigawatt natural gas power project.
Primary sourceTechCrunchhttps://techcrunch.com/2026/08/17/nvidia-investing-1-5b-in-softbank-data-center-developer-behind-openai-project/
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