OpenAI and SoftBank Pour $1B Into SB Energy, Supercharging Stargate's AI Data Center Buildout
January 9, 2026 · by Fintool Agent
OpenAI and SoftBank Group are injecting $1 billion into SB Energy, a SoftBank-owned infrastructure company, marking a significant acceleration of the Stargate AI infrastructure initiative. The investment—split evenly at $500 million each—will fund the buildout of massive AI data centers critical to powering the next generation of artificial intelligence.
The deal represents more than just capital: it's a structural partnership designed to deliver AI computing capacity at unprecedented scale. OpenAI has selected SB Energy to build and operate its 1.2 gigawatt data center in Milam County, Texas—a facility large enough to power roughly 900,000 American homes.
Ask Fintool AI AgentThe $500 Billion Stargate Bet
The investment builds on the $500 billion Stargate commitment that OpenAI, SoftBank, and Oracle+4.68% announced at the White House in January 2025—one year ago today. President Trump backed the initiative as part of a broader push to expand domestic AI capacity.
Since then, Stargate has moved faster than expected:
- September 2025: Five new U.S. computing sites announced across Texas, New Mexico, and Ohio
- Total capacity: Nearly 7 gigawatts planned, with over $400 billion committed for the next three years
- Partners: Oracle+4.68% and Abu Dhabi-based MGX have joined as major investors
"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," said Greg Brockman, OpenAI's co-founder and president. "The result is a fast, reliable way to scale compute through large, highly optimized AI data centers."
Why SB Energy?
SB Energy isn't a typical energy company. Founded in 2019 by SoftBank Chairman Masayoshi Son to deploy renewable energy at scale, the company has evolved into a "fully integrated infrastructure development and ownership platform" that combines project development, construction, engineering, supply chain, and financing expertise.
The company brings critical capabilities to the table:
Financial backing: In addition to the $1 billion from OpenAI and SoftBank, Ares Management+0.09% previously invested $800 million in redeemable preferred equity—the third financing from Ares since 2020.
Execution track record: SB Energy recently acquired Studio 151, a data center construction and engineering firm with experience across 20 data center campuses. This brings development, construction, and operational capabilities in-house.
Multi-gigawatt pipeline: SB Energy is currently developing several multi-gigawatt data center campuses, with initial facilities under construction and expected to enter service this year.
Ask Fintool AI AgentThe AI Power Problem
The scale of power required for AI is staggering. Traditional data centers typically consume 10-50 megawatts. AI training clusters need 200-500 megawatts. Hyperscale AI campuses require 1-2 gigawatts.
OpenAI's Milam County facility alone will draw 1.2 gigawatts—enough to power approximately 750,000 U.S. homes at any given moment, according to Bloomberg.
This explains why Stargate's total commitment of 10 gigawatts represents such a massive undertaking. It also explains why the partnership includes provisions for grid modernization and new power generation to protect Texas ratepayers.
SoftBank's All-In AI Bet
The investment deepens SoftBank's commitment to OpenAI, which has become the centerpiece of Masayoshi Son's strategy. In the past year:
- SoftBank led OpenAI's $40 billion financing round—the largest private tech funding on record
- SoftBank sold its entire Nvidia stake for $5.83 billion to capitalize on its OpenAI bet
- Today's SB Energy investment creates vertical integration: SoftBank now backs both the AI company and its infrastructure provider
"SB Energy's strategic partnership with OpenAI accelerates our delivery of advanced AI data center campuses and associated energy infrastructure at the scale required to advance Stargate and secure America's AI future," said Rich Hossfeld, SB Energy co-CEO.
What It Means for OpenAI
OpenAI remains far from profitability despite explosive revenue growth. The company was on track to generate more than $20 billion in annualized revenue run rate in 2025, with plans to grow to "hundreds of billions" in sales by 2030, according to CEO Sam Altman.
To support that growth, OpenAI has inked more than $1.4 trillion in infrastructure deals in recent months. Today's partnership creates a preferred development model that combines:
- OpenAI's first-party data center design
- SB Energy's expertise in "speed, cost discipline, and integrated energy delivery"
SB Energy will also become a customer of OpenAI, deploying ChatGPT for its employees and using OpenAI's APIs—a small but symbolic detail showing how AI companies are becoming infrastructure providers to their own infrastructure providers.
Ask Fintool AI AgentWhat to Watch
Timeline: Initial SB Energy facilities are expected to enter service in 2026. The Milam County project will create thousands of construction jobs.
Environmental design: OpenAI and SB Energy have designed the Texas data center to minimize water usage—a growing concern as data centers strain local water supplies.
Competitive pressure: The investment comes as rivals accelerate their own infrastructure buildouts. Earlier today, Meta Announced Nuclear Power Agreements+1.08% with three companies for up to 6.6 gigawatts of capacity.
Legal overhang: Elon Musk's lawsuit over OpenAI's for-profit conversion is heading to trial in March 2026, which could affect the company's ability to raise capital and structure partnerships.
For investors, the clear winners are the companies building the picks-and-shovels of the AI boom: infrastructure developers, energy providers, and construction firms positioned to capture the $500 billion flowing into U.S. AI data centers.
Related
- Oracle+4.68% – Stargate infrastructure partner
- Ares Management+0.09% – SB Energy financial backer