SoftBank is reportedly planning a significant investment of up to $3 billion to transform a former electric vehicle (EV) manufacturing plant in Lordstown, Ohio, into a state-of-the-art facility dedicated to producing equipment for OpenAI's next-generation data centers. This strategic move underscores SoftBank's commitment to becoming a major player in the rapidly expanding field of artificial intelligence, aligning with CEO Masayoshi Son's vision to capitalize on the generative AI boom spearheaded by OpenAI.
The Lordstown site, acquired by SoftBank in August for $375 million, will be retooled to manufacture modular data center units. These units are designed to be portable and pre-assembled, allowing for faster deployment and scalable capacity, which are crucial for meeting the growing demands of AI infrastructure. The modular design enables these data centers to be quickly set up and expanded as needed, providing OpenAI with the flexibility to scale its operations efficiently. Manufacturing is expected to commence in early 2026. The facility will also house a small working data center to serve as a demonstration model.
This investment is an integral part of SoftBank's broader strategy and its $18 billion commitment to building a nationwide advanced AI network known as the Stargate Project. This initiative, announced at the White House in January 2025, involves a joint venture between OpenAI, SoftBank, and Oracle, with plans to establish five initial U.S. data centers. The Stargate project is projected to reach $500 billion over four years.
The Ohio facility will play a crucial role in supplying these data centers, including a major facility planned for Milam County, Texas, and other locations across the U.S. These data centers are designed to meet the unprecedented global demand for generative AI, agentic systems, and enterprise-scale automation. The facilities are projected to create thousands of construction and technical jobs, providing a significant boost for regional development and solidifying the U.S. as a global hub for cutting-edge AI infrastructure.
SoftBank's aggressive push into AI infrastructure is further highlighted by its recent divestment of a substantial stake in leading chipmaker Nvidia, valued at approximately $5.8 billion. This move demonstrates SoftBank's strategic shift from traditional investments to a focused approach on generative AI and its underlying infrastructure.
OpenAI CEO Sam Altman has stated the company aims to build 30 gigawatts of computing capacity at an estimated cost of $1.4 trillion, ultimately scaling to adding about 1 gigawatt a week. Unlike competitors like Meta and Google, OpenAI does not have established advertising or cloud services businesses to offset the massive costs associated with building out these data centers.
The strategic location of the Ohio plant offers several key advantages, including access to reliable water supplies for cooling the massive server farms, robust telecommunications connections to handle enormous data flows, and the power capacity required for large-scale AI infrastructure. These factors are critical for ensuring the efficient and reliable operation of AI data centers.
