MENA Newswire, SAN FRANCISCO: OpenAI and SoftBank Group announced a joint investment of $1 billion in SB Energy, expanding a large-scale effort to build power and data center infrastructure to support artificial intelligence computing in the United States. The investment forms part of the ongoing Stargate initiative, a multiyear program aimed at developing the physical infrastructure required for advanced AI training and deployment.
Under the terms disclosed, OpenAI and SoftBank will each contribute $500 million in equity to SB Energy, a company focused on energy generation, storage, and data center development. SB Energy is majority owned by SoftBank and operates as a standalone infrastructure platform. The funding is intended to support the construction and operation of energy assets and large data center campuses linked to AI workloads.
A central element of the investment is a previously announced data center project in Milam County, Texas. The site is designed to reach a total capacity of approximately 1.2 gigawatts, making it one of the largest single data center developments announced to date. SB Energy is responsible for developing and operating the facility, including the associated power infrastructure required to support continuous high-density computing.
The Milam County project is part of a broader buildout under the Stargate program, which brings together OpenAI, SoftBank, and other partners to establish large-scale AI infrastructure across multiple locations. The initiative encompasses data centers, power generation, and energy management systems designed to support the growing computational demands of modern AI models. Details on additional sites have not been disclosed.
In addition to its role as an infrastructure developer, SB Energy will also become a customer of OpenAI. The company plans to deploy OpenAI’s tools and application programming interfaces within its internal operations. This arrangement establishes a commercial relationship alongside the equity investment, linking infrastructure development with AI software adoption.
OpenAI and SoftBank confirm $1bn investment in SB Energy
The $1 billion investment adds to recent financing secured by SB Energy from external investors. The company has raised approximately $800 million in redeemable preferred equity from Ares Management, providing additional capital for infrastructure development. SB Energy has stated that the combined funding will be used to accelerate the construction of energy and data center assets tied to large computing loads.
SoftBank has continued to expand its involvement in AI-related infrastructure through equity investments and partnerships. The group is a major investor in OpenAI and has positioned infrastructure and energy assets as a key component of its technology portfolio. OpenAI, meanwhile, has emphasized the need for reliable power and large-scale facilities as AI systems increase in size and complexity.
Power infrastructure needs for large-scale AI computing
The announcement reflects the increasing scale of physical infrastructure associated with artificial intelligence deployment. Large data centers supporting AI workloads require substantial and stable power supplies, often at levels comparable to those used by industrial facilities. Projects such as the Milam County site highlight the growing intersection of energy development and advanced computing in the technology sector.
No financial terms beyond the disclosed equity commitments were released. The companies did not provide timelines for completion of the Texas facility or details on additional investments under the Stargate initiative. The transaction is subject to customary regulatory approvals and closing conditions.