Nvidia has committed up to $105 billion in financing for a substantial artificial intelligence data center in Ohio, set to be leased by OpenAI. The facility is expected to become one of the largest of its kind globally, according to an announcement made Monday.
OpenAI has secured a 20-year lease for the site, which is projected to deliver approximately eight gigawatts of computing capacity. This capacity will be instrumental in powering products such as ChatGPT. For context, one gigawatt is capable of powering around 750,000 homes.
Nvidia will serve as the exclusive provider of computer chips for the data center, which will be situated in Pike County, Ohio. The initial 800 megawatts of computing power is anticipated to be operational by 2028. The construction phase of the project is expected to generate 35,000 construction jobs over six years, concluding in 2032, with an additional 2,500 long-term operational jobs anticipated.
As part of the agreement, Nvidia is also investing $1.5 billion into SB Energy, a data center firm that operates as a subsidiary of SoftBank. Nvidia CEO Jensen Huang stated that this arrangement will secure long-term infrastructure for Nvidia's compute capabilities, enabling OpenAI to deploy highly productive AI factories that can be continuously upgraded with each new generation of technology.
This financing arrangement has drawn attention, particularly as Nvidia, a major supplier of AI chips, provides funding to AI labs that are significant purchasers of its hardware. Huang clarified that the financing is not a form of circular funding, emphasizing that OpenAI will be responsible for lease payments. Nvidia's financing will cover specific portions of lease and power expenses, rather than the entire project cost.
OpenAI's total commitments to acquire Nvidia hardware and compute capacity are expected to reach $600 billion by 2030. The development in Ohio is anticipated to be closely monitored by investors on Wall Street, who have expressed growing concerns regarding the substantial expenditures by AI firms amid a competitive race to advance artificial intelligence. Critics have also raised concerns about the significant energy demands of AI models and the potential for rising costs to impact consumers.