Southern 2x Long NVIDIA (07788) surged nearly 5% in trading, climbing 4.79% to HKD 182.55 with a turnover of HKD 2.3287 million as of press time.

Market reports indicate that NVIDIA has agreed to invest $2 billion in Lancium, with a commitment to inject an additional $1 billion once the developer reaches specific milestones for securing additional power grid access. The initial $2 billion investment will grant NVIDIA roughly a 20% equity stake, which could increase to approximately 30% upon the full execution of the additional investment. The deal values Lancium at an enterprise value of around $10 billion, including debt.

For NVIDIA, this equity stake in Lancium represents a strategic move to lock in scarce power resources for its vast customer base of chip users. Lancium serves as the power infrastructure provider behind the "Stargate" AI campus being built by OpenAI and Oracle in Abilene, Texas. The company has already secured and developed 4 gigawatts of power on the Texas grid, with an additional 15 gigawatts of connection projects in the pipeline.

Notably, this investment is structured as a pure equity stake, not involving credit guarantees for data center construction or leasing. Sources familiar with the matter suggest that NVIDIA is considering providing credit guarantees for other projects, including a massive 10-gigawatt data center project in Ohio involving OpenAI and SoftBank.