Nvidia's Circular Financing Web Expands with $1.5 Billion SB Energy Investment

Nvidia has invested $1.5 billion in SB Energy to fund OpenAI's newest data center campus in Ohio.

The investment allows Nvidia to book revenue twice on one deal: once as an investment return and again as a chip sale, filling the data center with its own GPUs.

This move is part of Nvidia's strategy to position itself not just as AI's arms dealer but also its banker and landlord.

The company has been building a circular financing web, with SB Energy building and leasing the facility to OpenAI under a 20-year lease.

Nvidia has scaled back its financial backstop for the project from $250 billion to less than $120 billion in response to investor pressure.