AI is no longer limited by algorithms. It’s limited by electricity, land, and physical infrastructure. That reality became clear after OpenAI and SoftBank Group announced a combined $1 billion investment into SB Energy, positioning the company as a core builder of America’s next-generation AI data centers.
OpenAI and SoftBank partnership is part of Stargate, the $500 billion AI infrastructure commitment unveiled earlier at the White House. What makes this announcement different is that it connects AI models directly to energy production, grid planning, and massive data center campuses, all under one coordinated strategy.
In simple terms, OpenAI is no longer just training smarter models. It is securing the physical backbone needed to run them at scale.
Why AI Now Needs Power, Not Just Code
As AI adoption accelerates, compute demand is exploding. Training and running large language models requires vast amounts of energy, stable grids, and purpose-built facilities. Cloud providers alone are no longer enough.
That is why OpenAI has signed a 1.2 gigawatt data center lease in Milam County, Texas, with SB Energy selected to build and operate the site. A 1.2 GW facility is not a normal data center. It is infrastructure on the scale of a small power plant.
SB Energy is already developing multiple multi-gigawatt campuses across the United States, with initial facilities expected to come online starting in 2026. The new equity funding from OpenAI and SoftBank is designed to accelerate this buildout while ensuring these data centers are optimized specifically for AI workloads.
This move signals a shift in AI strategy. Control over compute now means control over energy.
What Each Partner Brings to the Table
OpenAI and SoftBank partnership works because each side solves a different bottleneck.
OpenAI contributes first-party data center design and deep expertise in AI compute optimization. These facilities are not generic cloud buildings but are engineered around AI workloads, cooling needs, and efficiency.
SB Energy brings execution speed, cost discipline, and integrated energy delivery. Instead of relying entirely on existing grids, the company plans new power generation tied directly to data center demand, reducing stress on local ratepayers.
SoftBank, as SB Energy’s long-term sponsor, provides capital stability and scale. Together, the three companies are creating a new model for how AI infrastructure is built in the United States.
This OpenAI and SoftBank preferred partnership is non-exclusive, meaning SB Energy can apply the same model to future AI clients, potentially reshaping the entire data center industry.
The Milam County Project and Its Local Impact
The Milam County data center is expected to generate thousands of construction jobs, along with long-term operational roles. Workforce development and grid modernization are built into the project, not added later as public relations.
Water usage has also been addressed early in the design. OpenAI and SoftBank say the facility will minimize water consumption, a growing concern as AI data centers expand into regions already facing resource pressure.
By pairing new energy generation with data center demand, the project aims to protect Texas ratepayers while still supporting one of the largest AI compute deployments announced so far.
This matters because public backlash against AI infrastructure is growing in many regions. Projects that fail to address local impact are increasingly delayed or blocked.
SB Energy Becomes an OpenAI Customer Too
The OpenAI and SoftBank partnership runs both ways. SB Energy will become a major customer of OpenAI, using its APIs and deploying ChatGPT internally for employees. This creates a feedback loop where infrastructure builders actively use the AI systems they are powering.
In addition to the $1 billion equity investment from OpenAI and SoftBank, SB Energy also secured $800 million in Redeemable Preferred Equity from Ares, strengthening its balance sheet and supporting long-term expansion.
This level of financing suggests confidence not just in AI growth, but in the idea that AI infrastructure itself is becoming a standalone investment category.
What This Signals for the Future of AI
This deal confirms a trend that has been quietly forming. The next winners in AI will not only be model developers but also companies that control energy, compute, and execution at scale.
AI is entering an industrial phase. That phase requires physical assets, long-term capital, and partnerships that look more like energy and infrastructure deals than software launches.
For OpenAI, this partnership reduces dependence on third-party cloud capacity. For SoftBank, it aligns with its long-term vision of owning the rails of future technology. For SB Energy, it cements its role as a foundational player in the AI economy.
The era of AI experiments is ending. The era of AI infrastructure has begun.