OpenAI and SoftBank Commit $1 Billion to SB Energy for Next-Generation AI Data Centers and Stargate Expansion
In a major boost to U.S. artificial intelligence infrastructure, OpenAI and SoftBank Group have jointly invested $1 billion in SB Energy, a leading developer of renewable energy and data center projects backed by SoftBank and Ares Management. This strategic equity funding, split evenly with $500 million from each partner, accelerates the construction of massive AI-optimized facilities as part of the ambitious Stargate initiative.
The collaboration deepens ties between the two companies and supports OpenAI’s rapid scaling of compute resources to meet surging demand for advanced AI models.
Key Highlights of the Partnership
- SB Energy will construct and manage a 1.2 gigawatt data center campus in Milam County, Texas — a site OpenAI previously revealed in September 2025.
- The facility is engineered for sustainability, featuring minimized water consumption and dedicated new power generation to avoid straining the local Texas grid while protecting ratepayers.
- Initial phases of SB Energy’s multi-gigawatt campuses are already under construction, with operations expected to commence in 2026, generating thousands of construction jobs and fostering community growth through workforce training and grid enhancements.
OpenAI President and Co-founder Greg Brockman emphasized the synergy: this alliance merges SB Energy’s proven capabilities in rapid, cost-effective infrastructure delivery and energy integration with OpenAI’s specialized knowledge in designing high-performance AI data centers, enabling faster and more dependable scaling of optimized compute resources.
SB Energy Co-CEO Rich Hossfeld highlighted the broader impact: the partnership propels delivery of cutting-edge AI campuses and supporting energy systems at the scale necessary to advance Stargate and strengthen America’s position in the global AI landscape.
Connection to the Landmark Stargate Initiative
This $1 billion commitment builds directly on the $500 billion multi-year Stargate program, unveiled in January 2025 at the White House by OpenAI, SoftBank, Oracle, and other partners, with endorsement from President Donald Trump. Stargate aims to deploy up to 10 gigawatts of AI infrastructure across the U.S. to secure national leadership in AI, drive economic growth, and create hundreds of thousands of jobs.
SB Energy now serves as a non-exclusive preferred partner for future projects, pioneering an innovative construction approach that integrates OpenAI’s proprietary designs with SB Energy’s strengths in execution efficiency and energy solutions for purpose-built, gigawatt-scale AI facilities.
Growing Ties Between OpenAI and SoftBank
The relationship between OpenAI and SoftBank, led by CEO Masayoshi Son, has intensified significantly. Following the Stargate announcement, SoftBank spearheaded OpenAI’s record-breaking $40 billion funding round in early 2025 — the largest private tech financing ever. Additional moves include SoftBank’s sale of its Nvidia stake for $5.83 billion in late 2025 to fuel its “all-in” focus on OpenAI.
OpenAI’s Massive Infrastructure Push and Revenue Momentum
OpenAI continues aggressive expansion amid explosive AI adoption. The company has secured over $1.4 trillion in infrastructure agreements in recent months to support training and inference for next-generation systems.
In November 2025, CEO Sam Altman projected the company would exceed $20 billion in annualized revenue run rate for the year, with ambitions to reach hundreds of billions by 2030 through enterprise solutions, new AI applications, and potential direct compute offerings.
This SB Energy partnership represents a critical step in addressing power and infrastructure bottlenecks, positioning OpenAI to maintain its edge in the competitive AI race while contributing to U.S. technological and economic leadership.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.