OpenAI and SoftBank Group (OTC:SFTBF) (OTC:SFTBY) are teaming up on a $1 billion investment in SB Energy to power the next generation of massive AI data centers in the United States, as part of the Stargate project.
AI Data Centers Boom
The partnership, announced on Friday, will see OpenAI and SoftBank each invest $500 million in SB Energy, which is a subsidiary of SoftBank, to help meet growing demand for AI computing power.
Additionally, OpenAI has chosen SB Energy to construct and operate its 1.2 GW data center site in Milam County.
According to SB Energy, the California-based clean energy and digital infrastructure platform is currently working on several multi-gigawatt data center campuses, with the first facilities expected to become operational in 2026.
SB Energy’s co-CEO, Rich Hossfeld, emphasized that the partnership accelerates the delivery of advanced AI data center campuses and associated energy infrastructure at the scale required to advance Stargate and secure America’s AI future.
SoftBank’s Expanding AI Bet
This partnership follows SoftBank Group’s substantial investment in OpenAI.
In December, the Japanese conglomerate completed its $40 billion investment, marking a significant commitment to the future of artificial intelligence.
Earlier, SoftBank sold $5.8 billion worth of Nvidia Corp. (NASDAQ:NVDA) shares to fund its commitment to OpenAI.
Photo: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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