OpenAI and SoftBank Group announced a $1 billion investment in SB Energy, a SoftBank-owned energy and data center developer, as part of the Stargate AI infrastructure initiative.
Each company committed $500 million to support SB Energy’s growth as a builder and operator of large-scale data center campuses.
As part of the deal, OpenAI selected SB Energy to build and operate a previously announced 1.2 gigawatt data center in Milam County, Texas.
SB Energy is currently developing multiple multi-gigawatt campuses, with initial facilities expected to begin service in 2026, according to the company.
The partners also formed a non-exclusive preferred partnership to develop a new model for AI data center construction.
The approach combines OpenAI’s data center design with SB Energy’s energy delivery and project execution, with the goal of deploying purpose-built AI infrastructure at scale.
SB Energy also secured $800 million in redeemable preferred equity from Ares to support its expansion.
The company stated that it will become a major customer of OpenAI by utilizing its APIs and deploying ChatGPT for its employees.
Why This Matters Today
AI models require massive, continuous computing power, and companies are increasingly securing their own energy and data center capacity to avoid shortages.
For you, this signals that major AI developers are moving deeper into infrastructure ownership and long-term power planning.
The deal also shows how private capital is being directed toward large U.S. data center projects tied to national AI initiatives.
By pairing energy developers with AI companies, the partners aim to speed deployment while controlling costs and grid impact.
Our Key Takeaways:
- OpenAI and SoftBank Group invested $1 billion in SB Energy to support the development of large-scale AI data centers.
- OpenAI signed a 1.2 GW lease for a Texas data center that SB Energy will build and operate starting in 2026.
- The partnership links AI model development directly to energy and infrastructure investment under the Stargate initiative.
You may also want to check out some of our other tech news updates.
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