Nvidia Pours Billions into Lancium's Texas Data Center Venture

Nvidia is set to invest up to $3 billion in Lancium, the developer of the Stargate data center campus in Texas. The chipmaker will initially invest $2 billion for a roughly 20% stake in Lancium, which is backed by Blackstone.

Lancium's portfolio, including its land and power connections, has an enterprise value of around $10 billion. Nvidia could invest an additional $1 billion if the company meets certain thresholds, such as grid hookups.

The capital will help Lancium expand its operations as it explores a potential initial public offering in 2027. Stargate is a joint venture between SoftBank, OpenAI, and Oracle to build data centers, with an announced investment of up to $500 billion in infrastructure for artificial intelligence.