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Nvidia bets $3B on SB Energy in AI infrastructure push

  • NVIDIA is committing $3 billion to SB Energy through a $1.5 billion private placement and a separate $1.5 billion forward contract.
  • OpenAI holds nearly 4 million warrants in SB Energy, with 1.73 million set to vest upon the company’s IPO completion.
  • Nvidia has provided $105 billion in residual-value guarantees covering 4.25 gigawatts of capacity at the PORTS-Pike campus intended for OpenAI’s computing needs.

Nvidia has committed $3 billion to data center developer SB Energy through a private placement and forward contract, according to the company’s IPO filing. The investment coincides with SB Energy’s U.S. IPO filing on Tuesday for a Nasdaq listing under the ticker “SBE.”

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OpenAI holds nearly 4 million warrants in SB Energy, granting the right to buy shares for $0.01 each. Approximately 1.73 million warrants will vest and be exercised upon IPO completion.

Nvidia agreed to purchase $1.5 billion of SB Energy’s Class N non-voting common stock at the IPO price. This adds to a separate $1.5 billion prepaid forward contract from August 17, bringing the total to $3 billion.

The company also provided residual-value guarantees covering 4.25 gigawatts of capacity at the PORTS-Pike Technology Campus in Ohio. The aggregate guaranteed value stands at $105 billion, with the campus intended to host OpenAI’s AI computing capacity.

SB Energy listed SoftBank and OpenAI as strategic investors and customers at its campuses. Nvidia serves as a strategic investor and residual-value guarantor for the PORTS-Pike project.

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This investment extends Nvidia’s push into the AI ecosystem beyond GPU manufacturing. The firm recently invested $3.5 billion in MediaTek and acquired Hugging Face for $12.9 billion.

NVDA stock fell over 1% in early trading amid broader market weakness. Retail sentiment on Stocktwits remained “extremely bullish” with chatter at “extremely high” levels.

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