SoftBank Plans $3 Billion Ohio EV Plant Conversion for OpenAI Data Centers
Japanese conglomerate SoftBank is reportedly planning a massive $3 billion investment to convert an electric vehicle plant in Lordstown, Ohio, into a specialized facility for manufacturing OpenAI’s data center equipment.
Key Takeaways
- SoftBank to invest $3 billion in converting Ohio EV facility for OpenAI.
- The site will produce portable, modular data center units for faster deployment.
- Manufacturing is scheduled to begin early next year.
- This is part of SoftBank’s broader $18 billion ‘Stargate Project’ for a US AI network.
According to a Reuters report via The Information, the Lordstown facility, which SoftBank acquired in August for $375 million, will be retooled to produce modular data center units. These portable, pre-assembled units are designed for rapid deployment and scalable capacity, intended for OpenAI’s forthcoming AI data centers across the US, including a major facility in Milam County, Texas.
Production is expected to commence early next year. The converted plant will also feature a small operational data center as a demonstration model.
Part of a Broader AI Infrastructure Push
This significant investment forms a key part of the joint venture SoftBank announced at the White House in January, where the company committed $18 billion towards building a nationwide advanced AI network, dubbed the ‘Stargate Project’. In September, OpenAI, SoftBank, and Oracle revealed plans for the first five US data centers under this ambitious initiative.
SoftBank’s Strategic Pivot to AI
The Ohio plant conversion underscores CEO Masayoshi Son’s aggressive strategy to go all-in on the generative AI boom, centered around OpenAI. Reinforcing this shift, SoftBank recently divested its substantial stake in chipmaker Nvidia, valued at approximately $5.8 billion.
OpenAI’s infrastructure ambitions are colossal. In October, CEO Sam Altman stated the company aims to build 30 gigawatts of computing capacity at an estimated cost of $1.4 trillion, with a long-term goal of adding about 1 gigawatt per week. Unlike competitors such as and , OpenAI lacks a large-scale advertising or cloud services business to help fund this massive data center expansion.
