ISLAMABAD – Nvidia is reportedly in talks to invest up to $3 billion in SB Energy, a subsidiary of SoftBank Group that is developing a large data centre campus in Ohio for OpenAI.
According to The Information, the potential Nvidia SB Energy investment is part of broader talks. Nvidia, OpenAI and SB Energy are discussing around $100 billion in credit support for the Ohio project.
People familiar with the matter told the publication that Nvidia plans to provide half of the proposed $3 billion investment when it signs the agreement. The company could invest the remaining amount through SB Energy’s planned initial public offering.
Neither Nvidia nor SoftBank immediately commented on the reported discussions.
SB Energy could pursue $5bn IPO
SB Energy, which is backed by SoftBank and OpenAI, could reportedly go public as soon as next month.
The company could seek to raise at least $5 billion through the IPO, according to the report. The planned listing could also provide a potential route for Nvidia to complete the remainder of its proposed investment.
The reported investment comes as technology companies and investors continue to commit significant amounts of capital to data centre infrastructure needed to support artificial intelligence development.
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Nvidia reduces Ohio project guarantee
Separately, The Wall Street Journal reported that Nvidia has scaled back its guarantee connected to the Ohio project.
The company’s guarantee has reportedly fallen to less than $120 billion, compared with an earlier figure of $250 billion.
The changes come as companies involved in the project assess the financing requirements for one of the larger data centre developments associated with the growing artificial intelligence industry.
The Information’s report on the potential Nvidia investment has not been independently verified.
Nvidia stock performance
Nvidia remains one of the world’s largest publicly traded technology companies, with a reported market capitalisation of approximately $5.45 trillion.
The company’s shares have traded between a 52-week high of $236.54 and a 52-week low of $164.07.
Nvidia shares have gained around 24.78 per cent over the past 12 months, according to figures cited in the original report.
The company has also benefited from strong investor interest in artificial intelligence infrastructure. This includes processors and data centre technologies.
The reported SB Energy investment could further strengthen Nvidia’s position in the growing AI infrastructure market. It would also deepen the company’s links with OpenAI and other AI firms.
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What the reported deal means
If completed, the proposed $3 billion Nvidia SB Energy investment would give Nvidia a significant financial interest in a company developing data centre infrastructure for OpenAI.
However, the reported investment remains under discussion and could change before any agreement is finalised.
The broader financing arrangements, including the proposed credit support and SB Energy’s potential IPO, are also still subject to negotiations.
For now, neither Nvidia nor SoftBank has confirmed the reported investment.
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Key points:
- Nvidia is reportedly discussing an investment of up to $3 billion in SB Energy, a SoftBank-backed company developing a major data centre campus in Ohio.
- The proposed investment is linked to broader discussions involving Nvidia, OpenAI and SB Energy over roughly $100 billion in credit support for the project.
- Nvidia could provide about $1.5 billion when the deal is signed, with the remaining amount potentially tied to SB Energy’s planned initial public offering.
- SB Energy could reportedly launch its IPO as soon as next month and seek to raise at least $5 billion.
- Nvidia has also reportedly reduced its guarantee for the Ohio project to less than $120 billion, down from an earlier figure of $250 billion.
