Japanese conglomerate SoftBank (SFTBF) is investing up to $3 billion to turn an old electric vehicle factory in Lordstown, Ohio, into a plant that will build equipment for OpenAI’s (PC:OPAIQ) upcoming data centers, according to The Information. This move is part of a collaboration between SoftBank and OpenAI, which was first announced at the White House in January. Initially, both companies committed $18 billion each to the project, though it’s unclear if OpenAI will still contribute the full amount. Nevertheless, SoftBank appears to be sticking with its full commitment.
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The Ohio factory will start producing modular data center units by early 2026. These units will be shipped to sites like the $3 billion data center in Milam County, Texas, and others. By building its own facilities, OpenAI hopes to control more of its computing power and reduce its dependence on partners like Microsoft (MSFT). This move also lets OpenAI design its own server chips with help from Broadcom (AVGO).
At the same time, OpenAI is making massive cloud rental deals worth over $600 billion, with companies like Microsoft, Amazon (AMZN), Google (GOOGL), and Oracle (ORCL). It’s also securing AI chips from Nvidia (NVDA) and AMD (AMD), while working on custom chips of its own. Notably, CEO Sam Altman wants to grow OpenAI’s data center power to 250 gigawatts by 2033, which is more than 100 times what it uses now. The Lordstown factory, bought from Foxconn for $375 million, will speed up construction by using modular designs that allow faster setup and easier expansion.
Is SoftBank Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SoftBank stock based on 36 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SoftBank price target of $135.87 per share implies 14.6% upside potential.
