- SoftBank will invest up to $3 billion to repurpose an Ohio electric vehicle facility for OpenAI’s data centres.
- The Lordstown site will manufacture equipment for data centres in multiple U.S. locations, contributing to the expansion of AI infrastructure.
What happened: SoftBank to invest $3 billion in Ohio facility for OpenAI data centre production
SoftBank has announced plans to invest up to $3 billion in revamping a former electric vehicle facility in Lordstown, Ohio, to support the growing infrastructure needs of OpenAI. The factory will produce equipment for OpenAI’s data centres, which will be deployed across the U.S., including in Milam County, Texas, as part of a broader initiative to bolster the generative AI ecosystem.
This follows SoftBank’s previous investment in OpenAI, where it took a stake in the company and also sold its $5.8 billion stake in Nvidia to finance its AI strategy, which is heavily focused on OpenAI. The Japanese conglomerate purchased the Lordstown site in August 2023 for $375 million, marking a significant shift towards becoming a key player in the AI space.
Additionally, SoftBank, OpenAI, and Oracle announced plans earlier this year to build five AI data centres across the U.S. as part of a $500 billion project known as Stargate. The Ohio plant will be responsible for producing modular, pre-assembled data centre units, which are designed for rapid deployment and scalability. Production of these modular units is expected to start early next year, and the facility will include a small working data centre as a demonstration model.
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Why it’s important
The investment is crucial for OpenAI’s ambitious expansion plans, providing the infrastructure necessary to support the vast computational demands of generative AI applications like ChatGPT. Modular data centres offer a more flexible and efficient solution for rapidly scaling AI operations, especially given the increasing demand for powerful computing resources. SoftBank’s investment further solidifies its position as a major player in the AI space, with the company’s backing accelerating the development of critical infrastructure.
