OpenAI and Japan’s SoftBank Group are investing $1 billion in SB Energy in an ongoing effort to develop and build data centers.
Each will invest $500 million in infrastructure companies, partly owned by the Japanese group. the deal is made on stargate The initiative, a public-private collaboration that was unveiled nearly a year ago by President Donald Trump and aimed to provide world-leading AI infrastructure for the US.
Stargate launch SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman joined Trump to announce the $500 billion project, billed as one of the largest in US history.
SB Energy was formed in 2019 as an energy company and is now focused on the data center buildout needed to deliver the necessary infrastructure as the AI revolution gathers pace.
The latest series of funding follows an $800 million investment from Los Angeles-based Ares Management Infrastructure Opportunities in 2025. It is not clear what the current valuation of SB Energy is.
As part of the agreement, SB Energy will build and operate OpenAI’s new 1.2 gigawatt data center site in Milam County, Texas. Revealed in September.
In addition to the Milam facility, SB Energy is developing other multi-gigawatt data center complexes, some of which are already under construction and expected to enter service later this year.
Additionally, OpenAI, SoftBank and SB Energy have formed “a non-exclusive preferred partnership” to develop a new model for data center builds, according to a press release. According to the release, it claims to combine the ChatGPT manufacturer’s first-party hub design with SB Energy’s “speed, cost discipline and expertise in integrated energy delivery.”
SB Energy cited its work in Milam County, where the data center is designed to reduce water use, as an example of its efforts to efficiently develop new facilities without causing problems for local residents.
“The partnership with SB Energy brings together their strengths in data center infrastructure and energy development and OpenAI’s deep domain expertise in data center engineering,” Greg Brockman, co-founder and president of OpenAI, said in the release. “The result is a fast, reliable way to perform computations through large, highly optimized AI data centers.”
As SB Energy’s commitments continue to grow, it has confirmed the acquisition of California-based Studio 151, a company that has already been involved in the development of 20 data center campuses.
