In a landmark move for the burgeoning AI sector, OpenAI and SoftBank Group have announced a combined investment of $1 billion into SB Energy. Each company will contribute $500 million towards bolstering data center and power infrastructure, a critical need as the demand for AI-driven services continues to surge.
SB Energy, which is under the umbrella of SoftBank and receives backing from Ares Management, will play a pivotal role in constructing and operating a state-of-the-art 1.2-gigawatt data center for OpenAI. This facility, located in Milam County, Texas, was first unveiled in September 2025. The initiative is part of the broader $500 billion Stargate project endorsed by President Donald Trump in early 2025, aiming to scale up AI data centers nationwide.
The partnership establishes a non-exclusive preferred relationship, combining OpenAI’s extensive knowledge in data center design with SB Energy’s proven expertise in fast-tracking infrastructure delivery and energy management. Rich Hossfeld, co-CEO of SB Energy, expressed optimism about the collaboration, highlighting that it significantly accelerates the delivery of advanced AI data center campuses essential for the success of the Stargate initiative.
Meeting Growing Energy Needs
As tech giants strive to meet the increasing demands for energy driven by AI operations, investment in power infrastructure has become paramount. The expansion has prompted a surge in electricity consumption, necessitating a strategic response from invested companies. Alongside its role as a builder, SB Energy will also integrate OpenAI products into its operations by utilizing APIs and deploying ChatGPT for employee workflows.
Greg Brockman, President of OpenAI, remarked on the symbiotic relationship formed through this partnership, which not only enhances infrastructure capabilities but also optimizes operational efficiencies through advanced AI technologies. He noted, “This collaboration defines a fast and efficient path to scale compute resources via highly optimized AI data centers.”
Strengthening Partnerships in Tech
The ties between SoftBank and OpenAI have deepened over the past year, signaling a robust strategic alignment that has culminated in this latest investment. Just months after the Stargate project went public, OpenAI completed a record-breaking $40 billion financing round led by SoftBank, marking a significant moment in private tech investments.
In November 2025, SoftBank divested its entire holding of Nvidia shares for $5.83 billion, strategically reallocating those resources to further its partnership with OpenAI. The tech company has recently signed over $1.4 trillion in infrastructure contracts aimed at establishing the necessary data centers to support its growing operational demands. As reported by CEO Sam Altman, OpenAI anticipates generating an estimated $20 billion in annual revenue by 2025, though it continues to rely heavily on external funding as it navigates its pathway to profitability.
This substantial investment in infrastructure reflects a larger narrative within the tech industry: the urgent need for data centers capable of supporting an AI-driven future. The initial phases of SB Energy’s multi-gigawatt campuses are projected to commence operations in 2026, paving the way for what promises to be a transformative era in AI capabilities and operational infrastructure.
