OpenAI and SoftBank Group Partnership with SB Energy

OpenAI and SoftBank Group have each invested $500 million, totaling $1 billion, into SB Energy to accelerate the development of next-generation AI data center campuses and energy infrastructure in the United States. This partnership is part of the broader Stargate initiative, building on a $500 billion commitment announced in January.

Infrastructure Development and the Milam County Site

SB Energy will serve as the development and execution partner for OpenAI's data center buildout. As part of this agreement, OpenAI has signed a lease for a 1.2 GW data center site in Milam County, Texas.

Key details regarding the Milam County facility include:

  • Construction and Jobs: The project is create thousands of construction jobs.
  • Sustainability: The facility is designed to minimize water usage.
  • Energy Generation: OpenAI and SB Energy plan to build new generation capacity to support the site's energy needs and protect Texas ratepayers.

Strategic Investment and Funding

Beyond the $1 billion investment from OpenAI and SoftBank Group, SB Energy has secured an additional $800 million in Redeemable Preferred Equity from Ares to support its growth as a partner for data center campuses.

Collaborative Model for AI Infrastructure

OpenAI and SoftBank Group, along with SB Energy, have established a non-exclusive preferred partnership to create a new model for data center builds. This model integrates OpenAI's first-party data center design with SB Energy's expertise in speed, cost discipline, and integrated energy delivery.

According to OpenAI co-founder and President Greg Brockman:

"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. The result is a fast, reliable way to scale compute through large, highly optimized AI data centers."

Operational Integration

SB Energy will also become a major customer of OpenAI, utilizing OpenAI's APIs and deploying ChatGPT for its employees to integrate AI capabilities into its own operations.

Sources