OpenAI and SoftBank Group have jointly announced a significant investment of $1 billion in SB Energy, a move aimed at bolstering data center and energy infrastructure in the United States.This investment is part of the broader Stargate initiative, which has a total commitment of $500 billion, as revealed during a White House announcement in January 2025.
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cnbc.comprnewswire.comThe partnership will see SB Energy tasked with building and operating a 1.2-gigawatt data center site located in Milam County, Texas.This facility is expected to play a crucial role in supporting OpenAI's infrastructure needs as demand for artificial intelligence (AI) capabilities continues to surge.
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prnewswire.comfinance.yahoo.comGreg Brockman, OpenAI's president, emphasized the synergy between the two companies, stating, "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".
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cnbc.comThis collaboration aims to create a fast and reliable method for scaling compute resources through highly optimized AI data centers.In addition to the investment, SB Energy will also become a significant customer of OpenAI, utilizing its APIs and deploying ChatGPT for its employees.This integration is expected to enhance operational efficiency and innovation within SB Energy's workforce.
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prnewswire.comfinance.yahoo.comSB Energy, which is backed by SoftBank and Ares Management, has been actively developing several multi-gigawatt data center campuses.Initial facilities are currently under construction and are anticipated to begin operations in 2026.The company has also recently acquired Studio 151, a data center construction management firm, to strengthen its in-house capabilities in development and operations.
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prnewswire.comfinance.yahoo.comRich Hossfeld, co-CEO of SB Energy, remarked on the strategic importance of this partnership, stating, "Our 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".
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prnewswire.comThis initiative not only aims to meet the growing energy demands of AI but also focuses on delivering economic growth through job creation and community investment.The Stargate initiative, which has garnered support from major investors including Oracle, is seen as a critical step in addressing the increasing energy requirements associated with AI expansion.As tech companies invest heavily in power infrastructure, the demand for electricity to support larger and more numerous data centers is expected to rise significantly.
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finance.yahoo.comOpenAI's recent financial maneuvers, including a $40 billion financing round led by SoftBank, highlight the urgency of building out its infrastructure to remain competitive in the rapidly evolving AI landscape.CEO Sam Altman has indicated that the company is in a "code red" mode, focusing on enhancing its flagship product, ChatGPT, amid intensifying competition from rivals like Alphabet's Google.
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cnbc.comfinance.yahoo.comAs the partnership between OpenAI, SoftBank, and SB Energy unfolds, it is poised to reshape the landscape of AI infrastructure development, ensuring that the necessary resources are in place to support the future of artificial intelligence in the United States.The collaboration not only signifies a major investment in technology but also reflects a commitment to sustainable energy practices and community development in the regions where these data centers will be established.With the construction of the Milam County data center, SB Energy aims to create thousands of construction jobs while implementing designs that minimize water usage and enhance energy efficiency, further contributing to the sustainability goals of the initiative.
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prnewswire.comfinance.yahoo.comAs this partnership progresses, it will be crucial to monitor the developments in both the AI and energy sectors, as they are increasingly intertwined in the quest for innovation and efficiency in the digital age.
