The race to dominate artificial intelligence is no longer just about who builds the smartest algorithms. It is increasingly about who can build the most powerful and reliable infrastructure to run them. In a landmark move that could reshape the future of AI computing in the United States, OpenAI and SoftBank have jointly invested $1 billion into SB Energy, signaling a dramatic escalation in the global battle for AI supremacy.
The two technology heavyweights are each contributing $500 million to SB Energy, a SoftBank-owned company specializing in large-scale energy and data center development. The funding will accelerate work on Project Stargate, an ambitious plan designed to build massive, next-generation AI data centers across the United States.
This investment is not just another tech funding round—it represents one of the largest coordinated efforts yet to align artificial intelligence with energy and infrastructure on an unprecedented scale.
Why AI Infrastructure Has Become the New Battleground
Modern artificial intelligence, especially large language models like OpenAI’s GPT series, consumes vast amounts of computing power. Training and running these models requires thousands of advanced chips operating around the clock, often inside data centers that draw more electricity than entire cities.
In recent years, AI development has hit a major roadblock: power availability. Many regions simply do not have the grid capacity to support the next generation of AI facilities.
That’s why OpenAI and SoftBank’s move is so significant. Instead of waiting for utilities to expand the grid, they are investing directly into the energy and data center ecosystem needed to fuel AI’s future.
By partnering with SB Energy, OpenAI and SoftBank aim to build vertically integrated AI campuses that combine:
- Renewable energy generation
- Battery storage
- High-capacity data centers
- Direct grid connections
This model dramatically reduces delays, improves reliability, and ensures long-term sustainability.
What Is SB Energy and Why It Matters
SB Energy is a subsidiary of the SoftBank Group founded in 2019. It initially focused on renewable energy projects but has evolved into one of the most important players in AI-focused data center development.
The company designs, builds, and operates facilities that integrate solar farms, wind power, battery storage, and high-performance data centers. This makes it uniquely positioned to solve the energy bottleneck facing AI companies.
With offices in Redwood City, San Francisco, and Denver, SB Energy already manages large energy projects across the United States. The new $1 billion investment allows it to dramatically scale up operations focused on AI infrastructure.
SB Energy also strengthened its capabilities in 2025 by acquiring Studio 151, a company specializing in data center construction and operations. That acquisition enables SB Energy to handle everything from site development to long-term facility management.
Inside Project Stargate: A $500 Billion Vision
The $1 billion investment is part of Project Stargate, a sweeping AI infrastructure initiative launched at the White House in January 2025. Stargate is a partnership between OpenAI, SoftBank, and Oracle, with a total projected investment of $500 billion over four years.
The goal: build a nationwide network of AI mega-data centers that can support the next generation of artificial intelligence.
OpenAI alone has committed $1.4 trillion over eight years toward computing and infrastructure, underscoring how central hardware has become to AI leadership.
These facilities will not be small. Stargate envisions multi-gigawatt campuses—each far larger than today’s standard hyperscale data centers. Such facilities will be capable of running models far beyond the size and complexity of today’s systems.
The first Stargate data centers are expected to go live in 2026, with SB Energy leading construction and operations.
The Texas Mega-Data Center: A 1.2-Gigawatt Powerhouse
One of the most striking examples of Stargate’s scale is already under development in Texas. SB Energy has been selected to build and operate a 1.2-gigawatt data center for OpenAI—a facility so large it could power roughly 750,000 homes.
This site will become one of the most powerful AI computing hubs on Earth.
The Texas facility brings together OpenAI’s data center engineering expertise with SB Energy’s renewable energy systems. The result is a self-sustaining AI campus capable of running massive models without overwhelming local power grids.
By pairing data centers directly with renewable power and battery storage, OpenAI and SoftBank are creating a model that avoids long grid delays and minimizes environmental impact.
How This Partnership Solves AI’s Energy Crisis
AI’s biggest hidden challenge is not data or algorithms—it is electricity.
Training a single advanced AI model can consume as much energy as thousands of homes. As models grow larger and more capable, energy demand skyrockets.
Most utilities cannot supply this level of power quickly enough, forcing companies to wait years for grid upgrades.
SB Energy solves this problem by building private energy infrastructure alongside data centers. Its integrated approach allows OpenAI to bypass grid bottlenecks and scale faster than competitors.
Greg Brockman, President of OpenAI, described the partnership as “a natural fit,” highlighting the synergy between energy development and AI computing.
Jobs, Communities, and Economic Impact
Beyond AI, the Stargate initiative will bring massive economic benefits to local communities.
According to SB Energy’s co-CEOs Rich Hossfeld and Abhijeet Sathe, projects under Stargate will generate:
- Thousands of construction jobs
- Permanent technical and maintenance positions
- Investments in grid modernization
- Local tax revenue
Communities hosting these facilities will also benefit from upgrades to power infrastructure, water management systems, and transportation networks.
SB Energy has committed to environmentally responsible development, including water conservation and sustainable power generation.
SoftBank’s Expanding AI Empire
SoftBank is no stranger to bold technology bets. In 2025, it led a $40 billion funding round for OpenAI, further tightening its relationship with the AI leader.
The Stargate investment shows that SoftBank is not just betting on AI software—it is building the physical foundation that makes AI possible.
By controlling energy, land, and data centers, SoftBank gains enormous leverage in the future AI economy.
How This Changes the AI Power Balance
This $1 billion investment puts OpenAI and SoftBank ahead of rivals who still rely on traditional cloud providers.
While companies like Meta and Google are scrambling to secure electricity—some even exploring nuclear power—OpenAI and SoftBank are building their own AI energy empires.
Whoever solves the infrastructure problem first will dominate the next decade of AI innovation.
What Happens Next
With SB Energy’s GPU-powered facilities coming online and Stargate projects rolling out across the U.S., the next few years will define the AI landscape.
If the model works, future AI breakthroughs may depend less on who has the best algorithms—and more on who owns the most powerful machines.
One thing is clear: the future of artificial intelligence will be built on megawatts, not just megabytes.
OpenAI and SoftBank just made their biggest move yet to ensure they control both.