Nvidia Boosts Stake in SB Energy Ahead of $3 Billion IPO

Nvidia Corp., the largest maker of artificial intelligence processors, is expanding its stake in SB Energy Inc. by purchasing an additional $1.5 billion in shares ahead of the data center provider's US initial public offering.

The private placement agreement brings Nvidia's total backing of SB Energy to $3 billion, with the chipmaker acquiring new N class nonvoting shares at a level that is 90% of the IPO price, according to a regulatory filing on Bloomberg Terminal.

This move suggests that Nvidia is confident in SB Energy's growth prospects and sees potential for long-term returns. The exact timing of SB Energy's IPO was not specified in the source.