OpenAI and SoftBank Invest $1 Billion in SB Energy to Boost AI Data Center Infrastructure
OpenAI and SoftBank have announced a $1 billion joint investment in SB Energy, with $500 million contributed by each company, aiming to accelerate energy infrastructure and data center development under the Stargate AI initiative.
Under the agreement, SB Energy, owned by SoftBank, will construct and operate a 1.2-gigawatt data center in Milam County, Texas, a project previously outlined by OpenAI as part of its expansion plans. SB Energy will also become a client of OpenAI, leveraging OpenAI APIs and ChatGPT for its employees.
The Stargate initiative is a long-term program with an estimated $500 billion investment, focused on creating specialized data centers to train and run advanced AI models, with participation from major investors including Oracle, and strong political support since its announcement in January 2025.
Direct investment in energy infrastructure responds to growing electricity demand, driven by the rapid expansion of AI data centers worldwide. SB Energy is developing several data center complexes, with the first facilities expected to go online this year.
The partnership is expected to accelerate the deployment of advanced AI data centers, provide critical energy infrastructure, and strengthen the United States’ position as a global AI hub. Meanwhile, OpenAI faces rising operational costs for training and running AI models, intensifying competition with giants like Google, prompting a focus on enhancing ChatGPT while delaying other product launches to maintain competitiveness against platforms such as Gemini.
