OpenAI and SoftBank Supercharge AI Infrastructure with $1 Billion Investment

OpenAI and SoftBank Supercharge AI Infrastructure with $1 Billion Investment

The Strategic Alliance

OpenAI and SoftBank have each committed $500 million to SB Energy, a SoftBank-owned energy and infrastructure company, bringing the total investment to $1 billion. The funding is intended to support the development of energy and data center infrastructure required for large-scale artificial intelligence computing.

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The collaboration is linked to “Stargate,” an artificial intelligence infrastructure initiative designed to support future AI workloads. Under the arrangement, SB Energy will work with OpenAI on the planning and construction of energy assets and data center facilities capable of supporting high-density computing environments. The partnership reflects a growing focus among AI developers on securing long-term access to reliable power and physical infrastructure.

The Milam County Flagship Project

A central element of the partnership is a proposed 1.2-gigawatt data center campus in Milam County, Texas, which SB Energy is expected to develop and operate for OpenAI. If completed as planned, the site would rank among the largest AI-focused data center developments in the United States.

The facility is designed to support large-scale AI training and inference workloads and would include advanced cooling systems, high-capacity power infrastructure, and high-speed networking. According to project estimates, construction is expected to generate significant short-term employment, with longer-term operational roles once the site becomes active.

A Revolutionary Development Model

Beyond individual projects, OpenAI, SoftBank, and SB Energy have established a preferred partnership framework for future AI infrastructure development. The model aims to integrate energy generation, data center design, and AI computing requirements from the outset, rather than treating them as separate development stages.

Under this framework, SB Energy would act as a primary infrastructure partner for OpenAI’s most compute-intensive deployments. This approach allows for standardized campus designs, coordinated construction timelines, and long-term planning anchored by a committed anchor customer, reducing uncertainty for large capital investments.

Massive Financial Backing and Pipeline

In addition to the $1 billion investment from OpenAI and SoftBank, SB Energy has secured approximately $800 million in redeemable preferred equity financing from Ares. This capital structure provides long-term funding intended to support multiple large-scale infrastructure projects.

SB Energy is currently developing several multi-gigawatt data center campuses, with initial sites expected to enter service in the near term. These projects are designed to accommodate AI workloads that require power levels comparable to those of small cities, reflecting the increasing scale of AI-related infrastructure demand.

The Broader Industry Impact

The partnership highlights a broader industry trend in which artificial intelligence development is increasingly constrained by access to energy, land, and physical infrastructure rather than software alone. Large AI models require stable, high-capacity power supplies and purpose-built facilities, driving closer collaboration between technology firms and energy developers.

By treating AI infrastructure as an integrated system—combining power generation, cooling, and computing capacity—the Stargate initiative seeks to create a repeatable development model for future AI campuses. This approach may influence how other AI companies plan and finance their infrastructure needs.

The economic effects extend beyond the technology sector, with large data center developments expected to contribute to regional employment, supplier networks, and long-term infrastructure investment, particularly in areas selected for new campuses.

Looking Forward

The OpenAI–SoftBank–SB Energy partnership illustrates how artificial intelligence development is increasingly tied to industrial-scale infrastructure planning. Securing energy capacity, financing, and development expertise has become a strategic priority alongside advances in AI models themselves.

If successful, this model could serve as a reference for future AI infrastructure projects, shifting the industry toward long-term, partnership-driven development rather than isolated, site-by-site construction. As these campuses come online, they are likely to play a significant role in determining how quickly AI capabilities can scale and where that growth is geographically concentrated.

https://www.wsj.com/tech/ai/openai-softbank-to-invest-1-billion-in-sb-energy-fa7385b9