OpenAI and SoftBank Pour $1 Billion into SB Energy as Stargate Data Center Expansion Gains Momentum

SoftBank Group and OpenAI are investing $1 billion in SB Energy to enhance its capabilities as a key partner for large-scale U.S. data centers and energy infrastructure. Each company will contribute $500 million, with OpenAI also securing a 1.2-gigawatt data center lease in Milam County, Texas. This initiative, part of the Stargate project, aims to revolutionize AI and energy infrastructure in the U.S., driven by increasing demand for AI compute. SB Energy plans to develop several multi-gigawatt data centers, with operations expected to commence by 2026. As part of the strategy, SB Energy will utilize OpenAI’s APIs, including ChatGPT, for its workforce. Additionally, SB Energy has obtained $800 million in equity financing to bolster growth. This partnership aims to establish a scalable model for AI data center development, combining OpenAI’s engineering expertise with SB Energy’s energy solutions, while also generating thousands of construction jobs and promoting sustainable practices.

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