Why Nvidia is putting billions into the company behind Stargate’s Texas campus | News. az
Nvidia is planning to invest up to $3 billion in Lancium, the Texas power infrastructure developer behind the Stargate data center campus, The Information reported Friday. The chipmaker is expected to. . .
Nvidia is planning to invest up to $3 billion in Lancium, the Texas power infrastructure developer behind the Stargate data center campus, The Information reported Friday. The chipmaker is expected to initially invest about $2 billion for a roughly 20% stake in Lancium, according to the report, citing people familiar with the matter,Reutersreported. Nvidia could invest another $1 billion if Lancium reaches certain targets, including securing additional connections to the power grid. RECOMMENDED STORIESAlphabet seeks up to $25 billion in new debt amid soaring AI spendingOpenAI fires back at Apple over lawsuit targeting its hardware ambitionsMusk’s next big bet: SpaceX and Tesla invest $16. 8 billion in Texas chip plantMeta unveils AI coding agent in challenge to Anthropic and OpenAIThe deal would value Lancium and its portfolio of land and power connections at around $10 billion, The Information reported. The investment would provide Lancium with additional capital to expand its operations as the company explores a potential initial public offering in 2027. Nvidia and Lancium did not immediately respond to requests for comment. Lancium owns the 1,000-acre Lancium Clean Campus in Abilene, Texas, which serves as the first operational site of the Stargate initiative. Stargate is a joint venture involving SoftBank, OpenAI andOraclethat aims to build a large network of data centers to support artificial intelligence. The project was announced in January by US President Donald Trump, who said the companies would invest as much as $500 billion in AI infrastructure. Nvidia’s potential investment would deepen its role in the rapidly expanding AI infrastructure market, where access to electricity and data center capacity has become increasingly important as demand for advanced computing continues to grow. The proposed deal also highlights the growing value of power infrastructure and strategically located land as technology companies race to build the next generation of AI data centers. News. AzBy Aysel Mammadzada