In a major move to secure the power needed for the next generation of artificial intelligence, tech giants OpenAI and SoftBank Group have announced a combined investment of $1 billion in SB Energy. This capital infusion is aimed at accelerating the development of data centre and energy infrastructure for the colossal $500 billion Stargate initiative.
The Stargate Power Play: A $1 Billion Bet
The investment, confirmed by SB Energy on Friday, will see OpenAI and SoftBank contribute $500 million each. SB Energy, a company owned by SoftBank, has been tasked with a crucial role: building and operating OpenAI's previously announced 1.2-gigawatt data centre site in Milam County, Texas. This facility is a cornerstone of the broader Stargate project, a multi-year plan to construct a network of advanced AI data centres for both training complex models and running AI inferences.
The initiative has garnered significant political and corporate backing. Former President Donald Trump expressed support when the plan was unveiled in January 2025. Major tech investor Oracle is also among the key backers of the ambitious Stargate endeavour.
Energy: The New Bottleneck for AI Growth
This direct investment in power infrastructure underscores a seismic shift in the tech industry. As companies race to build larger and more numerous data centres to fuel the AI boom, access to reliable and massive amounts of electricity has become a critical constraint. The industry is now moving beyond just designing chips and algorithms to actively shaping the energy grid itself.
Rich Hossfeld, co-CEO of SB Energy, stated that the partnership "accelerates our delivery of advanced AI data centre campuses and associated energy infrastructure at the scale required to advance Stargate and secure America's AI future." SB Energy is developing several data-centre campuses, with the first facilities expected to come online later this year.
This trend is not isolated. Other tech behemoths like Meta Platforms are also allocating unprecedented funds to infrastructure projects that demand heavy investment in semiconductors, power, cooling systems, and servers.
Strategic Moves Amid Fierce Competition
The massive investment comes at a pivotal time for OpenAI. The company is grappling with soaring costs for training and operating its AI systems while facing intensifying competition from rivals like Alphabet's Google and its Gemini AI. In response to this pressure, OpenAI CEO Sam Altman reportedly placed the company in a "code red" mode late last year, focusing resources on enhancing its flagship product, ChatGPT, and delaying other product launches.
In a related strategic twist, SB Energy will not just be a builder for OpenAI but also a client. The company plans to use OpenAI's APIs and deploy ChatGPT for its employees, integrating the very technology its infrastructure is designed to support.
The race for AI supremacy is no longer just a software or hardware battle; it is increasingly a fight for watts, joules, and gigawatts. The $1 billion bet by OpenAI and SoftBank signals that the future of AI will be built, quite literally, on a foundation of robust and expansive energy infrastructure.
