In a definitive move to secure the electrical backbone of the next-generation internet, OpenAI and SoftBank Group Corp. finalized a joint $1 billion investment in SB Energy on Monday, January 12, 2026. The capital infusion is a critical tactical step in the “Stargate” rollout—a massive, $500 billion federal-backed initiative to build the world’s most advanced AI infrastructure on American soil.
The deal, which sees OpenAI and SoftBank each contributing $500 million, transforms SB Energy into a primary development engine for hyperscale AI campuses. Alongside the equity stake, OpenAI officially selected the firm to build and operate its flagship 1.2-gigawatt (GW) data center in Milam County, Texas, marking the first physical cornerstone of the Stargate project.
The Convergence of Atoms and Algorithms
The investment signals a shift in the AI industry: the bottleneck for artificial general intelligence (AGI) is no longer just code, but power and physical infrastructure. By partnering with SB Energy, OpenAI is vertically integrating its compute needs with a dedicated energy platform.
- Preferred Development Model: The trio has formed a “non-exclusive preferred partnership” to standardize data center builds. This combines OpenAI’s proprietary center designs with SB Energy’s expertise in “speed of delivery” and grid integration.
- Vertical Integration: SB Energy will not only build the data centers but will also develop new renewable generation capacity to power them, insulating the sites from public grid volatility.
- Operational AI Deployment: In a reciprocal arrangement, SB Energy will become a major customer of OpenAI, deploying ChatGPT and specialized APIs across its workforce to optimize its own energy management and construction cycles.
Stargate by the Numbers: Scaling to 10 Gigawatts
The Milam County site is just the beginning. The Stargate project, first unveiled at the White House in January 2025, aims to deploy 10 gigawatts of compute capacity by 2029.
| Project Phase | Milestone | Capacity Goal |
| Initial Equity | $1 Billion (SoftBank & OpenAI) | Seed infrastructure capital |
| Flagship Site | Milam County, Texas | 1.2 GW (Under development) |
| Near-Term Target | 5 New U.S. Sites (Ohio, NM, TX) | 7 GW of planned capacity |
| Full Vision | Total Stargate Commitment | 10 GW / $500 Billion Investment |
Economic and Local Impact
The Stargate rollout is being framed by the Trump administration and corporate leadership as a “New Industrial Revolution.” In Texas alone, the Milam County facility is expected to generate thousands of high-paying construction and technical jobs.
Importantly, SB Energy has committed to protecting local ratepayers. By building its own generation assets and utilizing advanced water-saving cooling technologies, the firm aims to minimize the “AI strain” on the ERCOT grid—a frequent point of contention for large-scale industrial projects in the state.
The Bottom Line: A Private Utility for AGI
With this $1 billion injection, OpenAI and SoftBank are effectively creating a “private utility” tailored for the AI era. As frontier models like GPT-6 demand unprecedented levels of electricity, the Stargate project ensures that the path to AGI is not blocked by a lack of physical power.
The deal follows an $800 million investment in SB Energy by Ares Management in 2025, confirming that the “AI-Energy” asset class is now a primary target for global institutional capital.
Masayoshi-Son-Chairman-and-CEO-SoftBank-by-FT-on-Wikimedia.
