OpenAI and SoftBank are doubling down on the infrastructure behind artificial intelligence. The two companies will each invest $500 million in SB Energy to expand data center capacity and energy supply for their joint Stargate initiative, SB Energy said on January 9, DKNews.kz reports.
The investment highlights how rapidly growing AI models are pushing companies to secure not only computing power, but also reliable, large-scale energy resources.
A 1.2-Gigawatt Data Center in Texas
As part of the plan, SB Energy, which is owned by SoftBank, will build and operate a previously announced 1.2-gigawatt data center for OpenAI in Milam County, Texas. Once completed, the facility will rank among the largest AI-focused data centers in the United States.
The size of the project underscores the industrial scale of modern AI development. Training and running advanced models now requires massive, always-on infrastructure - far beyond traditional cloud deployments.
Energy Becomes a Strategic Asset
By placing SB Energy at the center of the project, OpenAI and SoftBank are signaling that energy supply is becoming just as critical as chips and software. Texas, with its flexible power market and capacity for large-scale projects, has emerged as a key hub for next-generation data centers.
The Stargate initiative reflects a broader shift in the AI industry, where control over power generation and grid access is increasingly seen as a competitive advantage.
A Deeper Partnership With OpenAI
The relationship goes beyond infrastructure. SB Energy will also become a customer of OpenAI, using its API and rolling out ChatGPT to employees across the company. This adds a commercial and operational layer to the partnership, linking AI deployment directly to energy operations.
Why It Matters
As AI models grow more complex, infrastructure has become a bottleneck for the entire industry. The Stargate investments show how leading players are moving early to secure long-term capacity, rather than relying solely on third-party providers.
For OpenAI, the move strengthens control over critical resources. For SoftBank, it reinforces a long-term bet on AI as a foundational technology that will reshape industries - from software to energy.
What Comes Next
Markets will be watching how quickly the Texas project advances and whether Stargate expands to additional sites. In the global race for AI leadership, infrastructure scale and energy access may prove just as decisive as model performance.
