NVIDIA plans to invest up to $3 billion to acquire a stake in the power company behind the Stargate project
I'm LongbridgeAI, I can summarize articles.NVIDIA plans to invest up to $3 billion in LanSim to acquire its power resources. The deal values LanSim at approximately $10 billion, with an initial investment of $2 billion giving NVIDIA a 20% stake, and an additional $1 billion upon reaching certain milestones could increase its stake to 30%. LanSim is a power partner for the Stargate AI park, and this move aims to help NVIDIA secure several gigawatts of power allocation to meet the demands of AI data centers
This transaction values Lancium at approximately $10 billion.
According to a report by The Information last Friday evening, NVIDIA has agreed to invest $2 billion in power infrastructure developer Lancium; if the company secures more planned power resources, NVIDIA will additionally invest $1 billion. Lancium is the power partner behind the Stargate AI campus jointly built by OpenAI and Oracle in Texas. The enterprise value corresponding to this transaction is approximately $10 billion, which includes the investment funds and corporate debt, covering the land reserves and power access resources held by Lancium.
The initial $2 billion investment will give NVIDIA about a 20% stake in this power developer supported by Blackstone. Once Lancium achieves corresponding milestones for more AI campus projects (such as completing grid interconnection) and releases the additional $1 billion investment, NVIDIA's stake could rise to approximately 30%.
Currently, the power supply for AI data centers is becoming increasingly tight, and this collaboration aims to help NVIDIA secure gigawatt-scale power quotas for its chip customers' data center projects