Nvidia doubles its SB Energy stake to $3B ahead of IPO

Nvidia ↗ 2.30% is deepening its bet on AI infrastructure, purchasing an additional $1.5 billion in shares of SB Energy, the SoftBank-backed data center developer, ahead of the company's planned US initial public offering, according to a regulatory filing on Monday.bloomberg

The chipmaker agreed to buy the stake at 90% of the IPO price through a private placement of Class N nonvoting shares, bringing its total investment in SB Energy to $3 billion.tradingview+1

A Cornerstone of SB Energy's IPO

The new commitment doubles down on Nvidia's earlier $1.5 billion investment, first announced in August when the chipmaker secured capacity at SB Energy's PORTS-Pike Technology Campus in Pike County, Ohio. That facility is being built to host Nvidia compute for OpenAI's data center operations.nvidianews.nvidia+1

SB Energy filed its IPO registration with the SEC on August 31, disclosing plans to list on the Nasdaq under the ticker SBE. The company, which combines data centers with solar power and battery storage, reported 8.8 gigawatts of data center capacity contracted or under construction across campuses in Texas and Ohio. CNBC reported the company is targeting between $5 billion and $7 billion from the offering.wsj+3

A Web of AI Partnerships

Nvidia is not the only major tech player with a financial stake in SB Energy's future. OpenAI received warrants valued at an estimated $5.5 billion in the company, according to draft IPO documents reviewed by The Wall Street Journal News Corp ↗ 0.55%. SB Energy also plans to sell up to $500 million in shares to Japanese investors as part of the listing, Reuters reported earlier this month.reuters+1

Combined with Nvidia's $3 billion commitment and OpenAI's warrants, total pre-IPO financial commitments to SB Energy exceed $7 billion. Reuters has reported that SoftBank may seek a valuation of up to $50 billion for the company.x+1

Losses Mount as Buildout Continues

Despite the scale of investment flowing into SB Energy, the company has yet to bring any of its data centers online. For the first half of 2026, SB Energy reported net losses of roughly $3.2 billion, according to CNBC. The company's contracted data center backlog stands at $430 billion, underscoring the enormous capital requirements of its buildout. Nvidia also serves as a residual value guarantor at the Ohio campus, extending what IFRE described as $105 billion in guarantees to the company.cnbc+2