Nvidia in talks to invest $3 billion in SB Energy as part of OpenAI data center deal, the Information reports

JUST IN: Nvidia in talks to invest $3 billion in SB Energy as part of an OpenAI data center deal, according to The Information.

Nvidia wants to put three billion dollars into a power company.

The Information reports the chipmaker is in talks to invest three billion in SB Energy, the SoftBank backed energy firm, and it's tied to an OpenAI data center deal. So the company that sells the chips is now paying for the electricity to run them. Jensen Huang has spent two years saying AI's real bottleneck isn't silicon, it's power, and here he is buying the socket.

Follow the circle on this one. Nvidia funds the energy company, the energy company powers the data centers, the data centers get filled with Nvidia chips, and OpenAI, which Nvidia also backs, rents the whole thing. Everyone in the loop is a customer of everyone else. Masayoshi Son gets his energy arm funded by the exact demand SoftBank helped create.

The deal isn't signed yet. But when the chip seller starts buying the grid, you know exactly where this industry thinks the real shortage is.

This is Sara White, reporting for HIT.

Source Read the original reporting at channelnewsasia.com