Jensen Huang announced a partnership with SB Energy for a site in Ohio that will host NVIDIA compute. The tenant is OpenAI. The company calls land, power and shell the next strategic resource.
- NVIDIA signs with SB Energy for a site in Portsmouth, Ohio.
- The tenant of the compute will be OpenAI.
- The claim is that land, power and shell become a resource like chips.
One sentence in the text shows where this is going: in the AI economy, compute is revenue.
It is written by Jensen Huang himself and it is not a figure of speech. It explains why a chip maker is suddenly talking about plots of land, substations and power lines.
What is actually happening
A chip maker becomes a landlord. It secures the sites, puts its own compute there, and rents it to whoever will use it.
If you followed how they fought over manufacturing capacity and memory for the last two years, you will recognise the move. It is the same one, just a step further down the chain.
And here is the uncomfortable part. When one supplier holds the chips, the networking, the software, and now the sites with the power, the word dependency starts to feel small for the situation.
I am not going to pretend I know how this lands on prices. I do know what every business does once it has gathered the whole chain into one pair of hands. Nobody has ever cut prices at that moment.
For you today: nothing. For the argument about who sets the price of compute in three years: quite a lot.