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OpenAI and SoftBank invest $1 billion in SB Energy for Texas data center infrastructure
Friday, January 9, 2026 at 09:36 PM
OpenAI and SoftBank have each invested $500 million in SB Energy to support the development of data centers in Texas. This initiative is part of the broader $500 billion Stargate infrastructure project. Following this deal, SoftBank maintains a significant stake in SB Energy and has previously committed $41 billion to OpenAI.
Context
OpenAI and SoftBank Group have committed $1 billion to SB Energy to accelerate data center and power infrastructure development in Texas. Each firm is contributing $500 million to the renewable energy developer, which is a subsidiary of SoftBank. This capital injection serves as a critical building block for the broader $500 billion "Stargate" initiative, a massive multi-year effort led by OpenAI and its partners to construct the next generation of AI supercomputing clusters.
This investment follows SoftBank’s recent $41 billion commitment to OpenAI, signaling a deepening strategic alliance. However, the transaction has intensified concerns regarding "circularity" within the AI supply chain. Critics point out that SoftBank is effectively funding OpenAI, which is then funneling capital back into a SoftBank-controlled entity. While the deal secures the massive energy capacity required for OpenAI’s expansion, the closed financial loop raises questions for investors regarding market transparency and the potential for inflated valuations within the ecosystem.
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