As part of a multi-firm collaboration, OpenAI and SoftBank have agreed to each invest $500 million into SB Energy, bringing the total money invested into SB Energy up to $1 billion, as per an official press release.
SB Energy is owned by SoftBank Corp, and the deal involving the three companies in question is part of a long-term strategy set out by OpenAI to build AI data centers and relevant infrastructure in the U.S., also part of the ambitious $500 billion figure mentioned at the White House in January.
The partnership builds on top of a critical financing agreement already set in place between SoftBank and OpenAI, in which the investment firm has committed $22.5 billion towards Stargate, with money ideally to be raised before 2025 wrapped up.
The new arrangement signals a full pivot on SoftBank’s part away from chipmaking firm NVIDIA towards more pure-play AI investing, with its significant commitments towards OpenAI and now SB Energy.
As part of the arrangement, SB Energy will be tasked with building OpenAI’s planned data center site in Milam County, with an expected capacity of 1.2 GW.
“SB Energy’s strategic partnership with OpenAI accelerates our delivery of advanced AI data center campuses and associated energy infrastructure at the scale required to advance Stargate and secure America’s AI future. We are grateful for our longstanding sponsor SoftBank Group and new partner OpenAI for their investment in our platform, our team, and our long-term vision,” said SB Energy’s co-CEO Rich Hossfield.
At the time of writing, SoftBank shares were priced at 4,263 Japanese Yen.