Japanese conglomerate SoftBank (SFTBF) is set to invest up to $3 billion to convert an old electric vehicle factory in Lordstown, Ohio, into a facility for building equipment for OpenAI’s new data centers. This initiative, born from a collaboration initiated at the White House in January, aims to enhance OpenAI’s data capabilities. The Ohio plant is expected to produce modular data center units by early 2026, supporting sites like the $3 billion facility in Milam County, Texas. By establishing this manufacturing base, OpenAI intends to lessen its reliance on partners like Microsoft (MSFT) and develop custom server chips with Broadcom (AVGO). Additionally, OpenAI is engaged in cloud rental agreements worth over $600 billion with major tech firms and aims to amplify its data center capacity to 250 gigawatts by 2033. Analysts maintain a Moderate Buy consensus on SoftBank stock, projecting a 14.6% price increase potential.
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