I'm really not interesting in posting all that's going on here, but it's a huge story and it's going to get a lot of press this week. I will post some early links and come back to it later, if it seems worthwhile.
First, go back to an earlier blog that lays the groundwork for a lot of background. The blog is here. It's a good starting point. Think PJM.
Now, the new links:
Evan, on x: link here.
The WSJ on x: link here.
The WSJ, direct: link here.
From the linked article:
Nvidia is in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project, one of the most ambitious financial transactions yet in America’s artificial-intelligence boom.
The guarantees from Nvidia would help the ChatGPT maker lease a 10-gigawatt project that SoftBank’senergy subsidiary is developing in southern Ohio.
In total, the project could cost more than $500 billion, including the chips that would go inside the data centers. It would be the largest data-center project announced to date.
The power for the project is controlled by the U.S. government and funded separately by Japan under a recent trade deal. Commerce Secretary Howard Lutnick is involved in deciding who will get the power.
Nvidia’s backing would allow the data-center developer, which is owned by Japanese billionaire Masayoshi Son’s investment firm SoftBank, to raise debt at more favorable terms than it could if OpenAI had no financial backer, since OpenAI has no investment-grade credit rating as an unprofitable private company.
The AI company has been in advanced talks to lease the site for several weeks, people familiar with the matter said.
CNBC will spend a lot of time talking about the financing which they will refer to "circular financing."
Shay, on x: link here. Does not relate to this new story directly but Shay provides ten (10) ways to invest in the AI data center buildout. However, the graph at this link definitely relates to this story. Look at PJM. PJM is the yellow/orange bar and exceeds "other." ERCOT grows but not excessively. MISO unremarkable. PJM: Ohio to Virginia.
Shay on x: link here. Again does not relate to this new story, but Shay provides the top fifteen (15) performers this year.
LDCs are tracked here: link here.
Oh, by the way, where is this new data center going to be built. Ohio, for sure. After that it's a bit murky, but appears to be Portsmouth (again). See top link.
As long as we're doing links on AI, let's add one more WSJ article that's being reported tonight. Link here at x or go direct to TWSJ: link here.
"You can howl at the wind, but AI is here to stay."
