Catenaa, Saturday, August 08, 2026- Nvidia will invest up to $3 billion in power infrastructure developer Lancium, the company behind the Stargate data center campus in Texas.
According to The Information, the chipmaker will invest an initial $2 billion for a roughly 20% stake in Lancium, which Blackstone backs.
Nvidia could invest an additional $1 billion if the company meets certain thresholds, including grid hookups, the report said.
Under the deal, Lancium and its portfolio of land and power connections have an enterprise value of around $10 billion, according to The Information.
The capital is expected to help Lancium expand its operations as it explores a potential initial public offering in 2027, the report said.
Stargate is a joint venture between SoftBank, OpenAI and Oracle to build data centers. The project was announced in January by US President Donald Trump, who said that the companies would invest up to $500 billion to fund infrastructure for artificial intelligence.
Lancium owns the 1,000-acre Lancium Clean Campus in Abilene, Texas, which serves as the first operational site of the Stargate initiative.
Meanwhile, during the SpaceX conference call, Elon Musk stated that Nvidia makes the “best AI computer” and noted that SpaceX will exclusively be using Nvidia’s new Vera Rubin architecture by the end of the year.
Musk’s technical prowess is well known, and an endorsement like that gives Nvidia investors all the confidence they need that it is still at the top of the AI computing food chain despite many rising competitors.
SpaceX also has a vision of launching data centers into space and performing computing there. This vision is lofty and expensive, but could make sense from a cooling and footprint standpoint.
Time will tell how this business plan shakes out for SpaceX, but for Nvidia, it’s just another great customer that continues to load up on its products.
Over the first six months of the year, SpaceX spent about $28.5 billion on capital expenditures. Annualized, that’s nearly $60 billion.
For comparison, the AI hyperscalers are spending anywhere from $100 billion to more than $200 billion on data center capital expenditures this year. Not all of those funds for any company go directly to Nvidia, but a decent chunk of them do.
