OpenAI and Japan’s SoftBank Group are investing $1 billion in SB Energy in the ongoing effort to develop and construct data centers.
Each will pump $500 million into the infrastructure companies, which is part-owned by the Japanese conglomerate. The deal builds on the Stargate initiative, a public-private collaboration unveiled nearly a year ago by President Donald Trump and aimed at delivering world-leading AI infrastructure for the U.S.
The launch of Stargate saw SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman join Trump to announce a $500 billion project hailed as the one of the largest in American history.
SB Energy was formed in 2019 as an energy company and is now focused on the frantic data center buildout required to deliver the infrastructure needed as the AI revolution gathers momentum.
The latest swathe of funding follows an $800 million investment from Los Angeles-based Ares Management Infrastructure Opportunities in 2025. It is not clear what SB Energy’s current valuation 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 that was revealed in September.
Aside from the Milam facility, SB Energy is developing other multi-gigawatt data center campuses, with some already under construction and expected to start 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. This is claimed to combine the ChatGPT maker’s first-party center design with SB Energy’s “expertise in speed, cost discipline, and integrated energy delivery,” according to the release.
SB Energy cited its work in Milam County, where the data center has been designed to minimize water usage, as an example of its efforts to develop new facilities efficiently without causing problems for local residents.
“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,” Greg Brockman, OpenAI co-founder and president, said in the release. “The result is a fast, reliable way to scale compute through large, highly optimized AI data centers.”
With SB Energy’s commitments continuing 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.
