OpenAI and SoftBank Group have jointly invested $1 billion in SB Energy, marking a major step in building large-scale AI infrastructure. The investment, announced in early January 2026, is part of the ambitious “Stargate” initiative, a multi-year plan aimed at developing next-generation data centers to support rapidly growing artificial intelligence workloads.
Under this deal, OpenAI and SoftBank will each contribute $500 million. SB Energy will use the capital to develop and operate high-capacity data center and power infrastructure, starting with a 1.2 gigawatt (GW) AI data center campus in Texas, USA.
This move highlights how AI companies are now directly investing in energy and physical infrastructure, not just software and chips.
What is SB Energy?
SB Energy is an infrastructure development and operations company backed by SoftBank Group. Originally known for its work in renewable energy and power assets, the company has evolved into a major player in data center-linked energy infrastructure.
Key Focus Areas of SB Energy
- Development and operation of large-scale data center campuses
- Power generation, grid connectivity, and energy management
- Long-term infrastructure support for AI and cloud computing
- Expansion across the United States, starting with Texas
SB Energy’s role is critical because AI data centers require massive, uninterrupted electricity supply, advanced cooling systems, and reliable grid integration.
What Is the Stargate Initiative?
The Stargate initiative is a long-term AI infrastructure plan backed by OpenAI, SoftBank, and Oracle, with strong support from U.S. policymakers. The project is estimated to involve up to $500 billion of investment over several years.
Core Objective of Stargate
- Build ultra-large AI data centers for training and inference
- Secure domestic AI infrastructure in the U.S.
- Reduce dependence on third-party power and data center providers
- Enable faster scaling of advanced AI models
The SB Energy investment is one of the first major execution steps under this initiative.
Why OpenAI and SoftBank Made This Investment
1. AI Needs Enormous Power
Modern AI models require vast amounts of electricity. Training and running advanced models can consume as much power as small cities. By investing directly in energy and infrastructure, OpenAI can ensure:
- Reliable power availability
- Lower long-term operating costs
- Faster deployment of AI capacity
2. Vertical Integration of AI Infrastructure
Instead of relying entirely on external cloud and data center providers, OpenAI is moving toward greater control over its infrastructure stack, from software to power supply.
SB Energy will not only build the infrastructure but will also use OpenAI tools internally, strengthening the strategic partnership.
3. SoftBank’s Long-Term AI Vision
SoftBank has consistently positioned itself as a long-term investor in AI, robotics, and next-generation technology. This investment aligns with its strategy of backing foundational infrastructure that enables future innovation.
Key Project Details
- Total Investment: $1 billion
- OpenAI Contribution: $500 million
- SoftBank Contribution: $500 million
- Initial Data Center Capacity: 1.2 GW
- Location: Milam County, Texas, USA
- Expected Timeline: First facilities targeted to come online from 2026
Why This Deal Is Important for the Market
Energy Becomes a Strategic Asset
This deal signals a major shift: electricity and infrastructure are now as strategic as AI algorithms. As AI adoption grows, power availability could become a bottleneck, making such investments crucial.
Rising Competition in AI Infrastructure
Other global tech giants like Google, Microsoft, and Meta are also expanding data center and energy investments. OpenAI’s move ensures it remains competitive in an environment where compute capacity defines market leadership.
Economic and Policy Impact
Large AI infrastructure projects bring:
- Job creation
- Regional economic development
- Increased focus on energy policy and grid modernization
Governments are increasingly supportive of such investments due to their strategic importance.
Opportunities and Risks
Opportunities
- Secure, scalable AI compute capacity
- Long-term cost stability for AI operations
- Strong strategic alignment between AI developers and infrastructure providers
Risks
- Extremely high capital requirements
- Regulatory and environmental approvals
- Rapid technological changes that could impact infrastructure design
Outcome
The $1 billion investment by OpenAI and SoftBank in SB Energy is more than just a funding deal—it represents a strategic shift in how AI companies think about growth. As artificial intelligence becomes more powerful, control over energy and infrastructure will be a decisive competitive advantage.
This partnership places OpenAI, SoftBank, and SB Energy at the center of the global race to build the backbone of the AI-driven economy.
Source: OpenAI
