SoftBank to invest $3b for OpenAI data centers: report

SoftBank plans to invest up to US$3 billion to remodel an EV factory in Lordstown, Ohio, to produce equipment for OpenAI’s upcoming data centers, according to The Information.

The Japanese conglomerate bought the site in August for US$375 million and aims to manufacture modular data center units starting early next year.

These units will support data centers in Milam County, Texas, and other locations.

The investment is part of a larger joint venture announced at the White House in January, where SoftBank pledged US$18 billion.

SoftBank, which previously sold a US$5.8 billion stake in Nvidia to fund its AI efforts, is working with OpenAI and Oracle on five U.S. data centers for the US$500 billion Stargate project.

The Lordstown facility will also include a demonstration data center, The Information reported.

OpenAI does not operate an ad or cloud business, making data center costs a key challenge compared to competitors like Meta and Google.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Stargate, a multiyear OpenAI-led effort to build hyperscale AI data centers, speeds buildouts through advanced designs and parallel site work

OpenAI teams with SoftBank to plan Lordstown in Ohio plus Milam County in Texas for faster deployment. Lordstown targets operations next year 1.
Abilene pivoted from crypto mining to AI and has one building live with a second nearly complete 2. Each building is expected to hold about 60,000 Nvidia GB200 (Grace Blackwell) chips, high-performance CPU-GPU systems for large-scale AI training 2. Oracle began delivering GB200 racks in June and started early training plus inference workloads at the campus 3.
Five new sites lift planned capacity to nearly seven gigawatts with over $400 billion over the next three years. Stargate is on track for a 10-gigawatt, $500 billion commitment by end of 2025 3.

How builders secure early capacity

Power suppliers should watch the Electric Reliability Council of Texas (ERCOT), the grid operator for most of Texas, plus utility plans for the Milam County and Shackelford County builds 1.
Abilene needs about 900 megawatts with a gas-fired plant for backup. Most power comes from a local mix of natural gas, wind, and solar. OpenAI plans to diversify sources over time 2.
Logistics firms should line up moves for server racks plus liquid-cooling gear to sites in Texas, New Mexico and Ohio plus the Midwest 1.
Water treatment firms can seek closed-loop cooling work at new sites. These systems recirculate water rather than consume it continuously. After an initial municipal fill, Oracle expects each Abilene building to need about 12,000 gallons per year 2.