Nvidia investing up to $3 billion in Lancium for Stargate

Nvidia is investing up to $3 billion in Lancium, the power infrastructure company behind the Stargate AI data center initiative, according to Reuters.

The deal could grow by another $1 billion depending on whether Lancium clears specific benchmarks, including milestones related to connecting to the electrical grid, Reuters reported, citing people familiar with the matter. The transaction assigns Lancium, along with its land holdings and power assets, an enterprise value of roughly $10 billion.

Lancium plans to use the capital to grow its operations while weighing whether to go public in 2027. Neither Nvidia nor Lancium offered a response when Reuters sought comment.

Lancium’s flagship property, the 1,000-acre Lancium Clean Campus in Abilene, Texas, is where Stargate first became operational. Stargate brings together SoftBank, OpenAI, and Oracle in an effort to construct AI data centers. U.S. President Donald Trump unveiled the initiative in January, at which point the three partners committed to channeling as much as $500 billion into AI infrastructure.

Nvidia CEO Jensen Huang has been vocal about the investment case for AI infrastructure. At a private gathering of family offices and financial institutions in Taipei, Huang argued that returns on AI investment had been reset in the past six months and were now profitable at a scale that had silenced earlier skeptics. “You need land, power, you need energy, but you also need financing,” Huang said. He framed wealthy family offices as an emerging source of capital for AI infrastructure alongside more traditional institutional investors.

Nvidia has also pursued other infrastructure-adjacent investments. The company entered a broader partnership with chip designer Marvell Technology that included a $2 billion investment.