OpenAI And SoftBank Invest $1B In SB Energy To Expand AI Infrastructure

TLDR

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OpenAI and SoftBank invest $1 billion in SB Energy to expand AI data centers.
The Milam County, Texas site will support 1.2GW of AI computing capacity.
SB Energy is backed by SoftBank and Ares with offices in California and Colorado.
The $500B Stargate project includes Oracle and aims to scale U.S. AI infrastructure.

OpenAI and SoftBank have announced a joint $1 billion investment in SB Energy to build AI-focused data centers in the United States. This partnership supports OpenAI’s infrastructure expansion through the Stargate Initiative, which aims to scale artificial intelligence capabilities nationwide.

$1 Billion Investment Targets AI Infrastructure Growth

OpenAI and SoftBank have jointly announced a $1 billion investment into SB Energy. Each company will contribute $500 million to the energy and infrastructure firm. The funding will support the construction and operation of AI data centers across the United States.

OpenAI and SoftBank have jointly invested $1 billion in SB Energy, an infrastructure company that’s working with the tech firms on a massive US buildout of data centers to power AI https://t.co/54CajL3tJv
— Bloomberg (@business) January 9, 2026

This move is part of a broader $500 billion Stargate Initiative. Stargate was introduced last year and includes key partners such as Oracle. The initiative’s goal is to increase data capacity and computing infrastructure for AI technologies across the country.

SB Energy to Build 1.2GW Data Center in Texas

As part of the agreement, SB Energy will construct and manage a 1.2-gigawatt data center in Milam County, Texas. OpenAI selected the company as the preferred partner for the site, which was announced in September.

According to OpenAI President Greg Brockman, “Partnering with SB Energy brings together their strength in data center infrastructure and energy development and OpenAI’s deep domain expertise.” One gigawatt of energy can supply electricity to about 750,000 U.S. homes, reflecting the scale of this development.

SB Energy’s Role in Stargate and Broader Expansion

SB Energy is backed by SoftBank and Ares Management and originally focused on renewable energy. It has since shifted toward developing and operating data centers. The company received $800 million in funding from Ares Infrastructure Opportunities funds last year.

It operates across various U.S. locations, including Redwood City, San Diego, and Denver. SB Energy is now involved in developing several multi-gigawatt data center campuses, with some facilities already under construction and scheduled to open this year.

In addition to funding, SB Energy has entered a non-exclusive preferred partnership with both OpenAI and SoftBank. The firms plan to create a new model for data center development that merges OpenAI’s designs with SB Energy’s speed and cost efficiency.

Strategic Partnerships and AI Infrastructure Race

This investment marks another step in OpenAI and SoftBank’s growing partnership. Two months after the Stargate announcement, OpenAI secured a $40 billion funding round led by SoftBank. This was the largest private tech funding deal to date, including contributions from Microsoft and other investors.

SoftBank had also sold its stake in chipmaker Nvidia for $5.83 billion as it intensified its focus on OpenAI. Meanwhile, demand for energy in AI computing continues to rise, with companies like Meta arranging up to 6 gigawatts of nuclear power.

OpenAI has signed over $1.4 trillion in infrastructure deals to support its expansion. CEO Sam Altman stated in November that OpenAI is projected to reach over $20 billion in annualized revenue in 2025, with a target of hundreds of billions by 2030.