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1h ago

Nvidia’s Up to $100 Billion Pact With OpenAI Spurs Five New Data Centers and a Tighter Oracle–SoftBank Loop

Staged payments tied to data‑center delivery highlight a widening gap between OpenAI’s revenues and its compute commitments.

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Overview

  • OpenAI announced five new facilities co-developed with Oracle and SoftBank’s SB Energy, lifting its Stargate plan toward roughly 7GW of capacity and aiming to accelerate completion.
  • Three sites are planned with Oracle in Shackelford County, Texas, Doña Ana County, New Mexico, and an undisclosed Midwest location, with two SB Energy–run sites in Lordstown, Ohio, and Milam County, Texas.
  • Nvidia said it will invest in $10 billion tranches as capacity comes online and supply its latest processors, framing a 10GW goal that CEO Jensen Huang equated to roughly 4–5 million GPUs.
  • Cost disclosures and analyst estimates underscore financing strain, with Huang citing about $50 billion to build each GW versus Nvidia’s $10 billion-per-GW investment cadence, while reports peg OpenAI 2025 revenue near $10 billion and sizeable losses.
  • Reporting indicates Microsoft was notified only a day before the deal, reinforcing a tighter OpenAI–Oracle–Nvidia cycle as OpenAI signals additional partnerships and plans in the months ahead.