OpenAI and SoftBank Group have announced a combined $1 billion investment in SB Energy to expand the infrastructure supporting their ambitious Stargate AI initiative. Each company is contributing $500 million, funding the development of data center and power facilities designed to meet the growing energy demands of advanced AI systems.

---

SB Energy to Build OpenAI’s 1.2-Gigawatt Texas Data Center

SB Energy, a SoftBank-owned company, will oversee the construction and operation of OpenAI’s previously announced 1.2-gigawatt data center site in Milam County, Texas. The facility is a key part of the Stargate initiative, which aims to develop state-of-the-art AI training and inference data centers across the United States.

In addition to providing infrastructure, SB Energy will become a customer of OpenAI, integrating ChatGPT into its operations and leveraging OpenAI’s APIs to enhance employee productivity and AI adoption.

---

The Stargate Initiative

The Stargate program is a multi-year, $500 billion initiative designed to scale AI infrastructure in the U.S., including both computational capacity and supporting energy systems. The project has received backing from major investors, including Oracle, and was publicly supported by former U.S. President Donald Trump at its announcement in January 2025.

As AI models grow larger and more complex, energy access has emerged as a critical constraint on data center expansion. Companies like OpenAI and SoftBank are directly investing in power infrastructure to ensure consistent and scalable operations, addressing the rising electricity needs of modern AI systems.

SB Energy plans to develop multiple AI data center campuses, with initial facilities expected to go live later this year. Rich Hossfeld, co-CEO of SB Energy, said:
“This partnership 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.”

---

AI Infrastructure Boom and Rising Costs

The surge in AI data center construction is mirrored by other major tech companies, including Meta Platforms, which are allocating unprecedented investments toward infrastructure projects that require massive expenditures on chips, power, cooling, and servers.

OpenAI itself faces escalating costs for training and operating large AI models amid competition from Alphabet’s Google and other industry players. CEO Sam Altman recently stated that the company has entered a “code red” mode focused on enhancing ChatGPT, temporarily delaying other product launches to counter emerging rivals like Google’s Gemini AI.

---

Implications for AI and Energy

• Strategic investment: OpenAI and SoftBank are securing energy and data infrastructure critical to AI scalability.
• Economic impact: Multi-billion-dollar investments in AI data centers create construction, energy, and tech jobs.
• AI adoption: Integration of ChatGPT in SB Energy operations demonstrates AI’s growing role in enterprise productivity.
• Infrastructure precedent: Other tech giants may follow suit, investing in localized energy solutions to support AI growth.

---

Key Takeaways

• OpenAI and SoftBank each invest $500 million in SB Energy for AI infrastructure.
• SB Energy to build and operate a 1.2-gigawatt Texas data center for OpenAI.
• Stargate initiative is a $500 billion program to expand AI data centers and power systems.
• Rising energy demands make power infrastructure critical for AI expansion.
• OpenAI focuses on ChatGPT improvements amid intensifying competition.