OpenAI and SoftBank have announced a $1 billion investment in SB Energy, underscoring the accelerating pace (and scale) of capital flowing into artificial intelligence infrastructure as demand for computing power continues to surge.
The investment supports OpenAI’s expanding network of large-scale data centers and builds on the $500 billion “Stargate” commitment unveiled last year alongside Oracle at the White House. Under the latest agreement, SB Energy will build and operate a 1.2-gigawatt data center in Milam County, Texas, a project first disclosed in September and positioned as one of the largest AI-focused facilities in the United States.
Powering next-generation AI infrastructure
“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, president of OpenAI. “The result is a fast, reliable way to scale compute through large, highly optimized AI data centers.”
SB Energy, backed by SoftBank and Ares Management, develops, owns and operates energy assets across the United States, with offices in California and Colorado. Beyond the capital injection, the company has formed a non-exclusive preferred partnership with OpenAI and SoftBank to develop what the firms describe as a new model for data center construction, integrating OpenAI’s proprietary design approach with SB Energy’s experience in speed, cost control and energy delivery.
The company has several multi-gigawatt data center campuses in development, with initial facilities already under construction and expected to enter service this year.
SoftBank’s all-in AI strategy
The deal highlights how closely aligned OpenAI and SoftBank have become. Led by founder Masayoshi Son, SoftBank has positioned OpenAI at the center of its long-term technology strategy. Two months after the Stargate announcement, OpenAI closed a record $40 billion private funding round led by SoftBank, with participation from Microsoft and several global investment firms.
SoftBank has also reshaped its portfolio to fund the push. In November, the group sold its entire stake in Nvidia for $5.83 billion, signaling a decisive shift toward AI platforms rather than chip manufacturing.
High growth, high capital intensity
Despite rapid revenue growth, OpenAI remains heavily dependent on external capital as it scales. Chief executive Sam Altman said last November that the company was on track to reach a $20 billion annualized revenue run rate in 2025, with ambitions to grow into the hundreds of billions by 2030.
To support that trajectory, OpenAI has inked more than $1.4 trillion worth of infrastructure-related agreements in recent months. The SB Energy investment underscores a central reality of the AI boom: software breakthroughs increasingly depend on massive, capital-intensive investments in power, land and physical infrastructure, tying the future of artificial intelligence as much to energy strategy as to algorithms.
