OpenAI and SoftBank Invest $1 Billion in SB Energy for AI Centers
OpenAI and SoftBank Group invest $1 billion in SB Energy to develop AI data centers in Texas, enhancing U.S. AI infrastructure.
OpenAI and SoftBank Group Invest $1 Billion in SB Energy
OpenAI and SoftBank Group have announced a $1 billion investment in SB Energy as of January 9, 2026. This investment aims to accelerate the development of multi-gigawatt AI data center campuses in the United States, including a 1.2 GW facility in Milam County, Texas. This initiative is part of the ambitious Stargate project. Each company is contributing $500 million in equity to support SB Energy's expansion as a key developer of AI infrastructure and integrated energy systems (OpenAI).
Partnership Details
The partnership positions SB Energy, a SoftBank Group subsidiary, to build and operate OpenAI's Texas site while forming a non-exclusive preferred alliance for future projects. This collaboration merges OpenAI's proprietary data center designs with SB Energy's expertise in rapid execution and cost efficiency (SB Energy).
Greg Brockman, OpenAI's President, emphasized the synergy: “Partnering with SB Energy brings together their strength in data center infrastructure and energy development and OpenAI’s deep domain expertise in data center engineering.”
Rich Hossfeld, SB Energy co-CEO, added, “SB Energy's strategic partnership with OpenAI accelerates our delivery of advanced AI data center campuses and associated energy infrastructure.”
Stargate Initiative
The Stargate project, a cornerstone of U.S. AI leadership, aims to deliver unprecedented compute capacity through a network of hyperscale data centers powered by advanced energy solutions. Announced in early 2025 with a $500 billion price tag, it represents one of the largest private infrastructure investments in history (PR Newswire).
Competitor Landscape
This deal intensifies competition in the AI data center arms race:
- Microsoft is investing $100 billion+ in U.S. data centers by 2028.
- Google and Amazon are deploying nuclear-powered campuses.
| Company/Alliance | Key Projects | Capacity Focus | Energy Strategy | Timeline |
|---|---|---|---|---|
| OpenAI/Stargate + SB Energy | 1.2 GW Texas (Milam Co.), multi-GW campuses | AI-optimized, integrated renewables | On-site power gen, grid modernization | 2026+ |
| Microsoft | East U.S. hubs w/ Dominion | 10s of GW | Renewables + grid upgrades | 2026-2028 |
| SMR-powered sites | 500 MW+ | Advanced nuclear | 2030 | |
| Amazon/Talen | Susquehanna nuclear | 960 MW | Existing nuclear acquisition | Online now |
Why Now?
The timing aligns with exploding AI compute needs—OpenAI's models now require exawatts annually, straining U.S. grids projected to need 45 GW new capacity by 2030 just for data centers (Energy Conference Network).
Broader Implications
This partnership signals a vertically integrated future for AI, where compute and power co-develop to evade bottlenecks. For Texas, the 1.2 GW site promises economic boosts via thousands of jobs (PR Newswire). Globally, it bolsters U.S. primacy, potentially pressuring Europe and Asia to match.
