OpenAI and SoftBank Invest $1 Billion in SB Energy to Power AI Expansion

OpenAI and SoftBank Group have committed $1 billion in total funding to SB Energy, an infrastructure platform owned by SoftBank. This investment is split evenly between the two giants and marks a critical milestone in the Stargate project, a $500 billion initiative focused on domestic AI infrastructure. The funding aims to support SB Energy as it becomes a primary partner for building and executing massive data center campuses.

A major outcome of this deal is OpenAI signing a 1.2 gigawatt lease for a new data center site in Milam County, Texas. This location is significant because it sits within the ERCOT market and leverages land previously used for large-scale solar arrays. The sheer scale of the lease, roughly equivalent to the power output of a nuclear reactor, highlights the massive compute needs for next-generation AI models.

The partnership introduces an innovative development model for infrastructure. It combines OpenAI’s proprietary data center designs with SB Energy’s established ability to deliver power with speed and cost discipline. This vertical integration allows for the creation of purpose-built AI environments that are far more efficient than standard commercial facilities.

Innovation also flows into the operational side of energy development. SB Energy will integrate OpenAI’s APIs and ChatGPT into its internal workflows to manage the complex logistics of building massive power sites. This includes using AI to optimize permitting, grid load balancing, and supply chain management, effectively using AI to accelerate the build-out of its own power sources.

Beyond the billion-dollar equity injection, SB Energy has secured $800 million in preferred equity from Ares Management. This additional capital provides the liquidity needed to maintain rapid construction timelines. The projects are designed to minimize water consumption and include plans for new local generation to protect Texas energy consumers from grid instability. OpenAI President Greg Brockman emphasized that merging energy development with data center engineering provides a fast and reliable way to scale. The partnership is expected to create thousands of construction jobs and modernize electrical grids in partner communities. These facilities are slated to enter service starting in 2026 as the demand for compute continues to climb.