Nvidia investing up to $3 billion in Lancium for Stargate

Published Aug 10, 01:06 PM UTC

Nvidia is investing up to $3 billion in Lancium, the power infrastructure company behind the Stargate AI data center initiative, with potential for an additional $1 billion if Lancium meets benchmarks related to electrical grid connections. The deal values Lancium, including its land and power assets, at roughly $10 billion. Lancium plans to use the capital for growth and is considering an IPO in 2027. Stargate, which first became operational at Lancium's 1,000-acre Clean Campus in Abilene, Texas, is a joint effort by SoftBank, OpenAI, and Oracle to build AI data centers, with a commitment of up to $500 billion in AI infrastructure announced by U.S. President Donald Trump in January. Nvidia CEO Jensen Huang has been advocating for AI infrastructure investment, arguing returns have become profitable at scale. Nvidia also recently invested $2 billion in chip designer Marvell Technology.