OpenAI and SoftBank Invest $1 Billion in SB Energy for AI Data Centers

OpenAI and SoftBank Group have announced a joint investment of $1 billion in SB Energy, with each company contributing $500 million. This partnership aims to enhance the infrastructure necessary for artificial intelligence operations, specifically through the construction of a 1.2-gigawatt data center in Milam County, Texas. The initiative is part of the broader Stargate project, a $500 billion commitment to build critical AI infrastructure in the United States over the next four years.

OpenAI and SoftBank invest $1 billion in Stargate infrastructure developmentBenzingaCNBCReuters

SB Energy, a subsidiary of SoftBank, will be responsible for building and operating the data center, which is expected to power approximately 750,000 households. The project emphasizes rapid deployment and cost efficiency, addressing the growing demand for AI computing power. SB Energy is also developing several multi-gigawatt data center campuses, with initial facilities projected to become operational in 2026.

OpenAI and SoftBank invest $1 billion in Stargate infrastructure developmentReutersBenzingaCNBC

The partnership is significant as it combines SB Energy's expertise in energy infrastructure with OpenAI's capabilities in data center engineering. Greg Brockman, OpenAI's president, stated that this collaboration would create a fast and reliable way to scale computing through optimized AI data centers. The partnership also positions SB Energy as a major client of OpenAI, integrating its APIs and deploying ChatGPT for its employees.

OpenAI and SoftBank invest $1 billion in Stargate infrastructure developmentCNBCReutersBenzinga

This investment follows SoftBank's substantial $40 billion financing round for OpenAI, marking a significant commitment to the future of artificial intelligence. Additionally, SoftBank recently sold its entire stake in Nvidia for $5.83 billion to further fund its investments in OpenAI. OpenAI has been actively pursuing infrastructure deals, totaling over $1.4 trillion, to meet the increasing demand for AI capabilities.

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Despite the ambitious plans, OpenAI faces challenges, including rising expenses associated with training and operating its AI systems amid intensifying competition from companies like Alphabet's Google. In late 2025, Sam Altman, OpenAI's CEO, indicated that the company had entered a "code red" mode to enhance ChatGPT's capabilities while delaying other product launches.

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SB Energy co-CEO Rich Hossfeld emphasized that the partnership accelerates the delivery of advanced AI data center campuses and associated energy infrastructure, which is crucial for advancing the Stargate initiative and securing America's AI future.

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As the construction of the data center progresses, the first facilities are expected to begin service in 2026. The collaboration between OpenAI and SB Energy represents a significant step in addressing the energy demands of AI technology, which is becoming increasingly critical in the tech industry.

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• “Partnering with SB Energy brings together their strength in data center infrastructure and energy development and OpenAI's deep domain expertise in data center engineering,” — Greg Brockman, President of OpenAI

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• “accelerates our delivery of advanced AI data center campuses and associated energy infrastructure at the scale required to advance Stargate and secure America's AI future,” — Rich Hossfeld, Co-CEO of SB Energy

Reuters