In a major development for the tech industry, OpenAI and SoftBank Group revealed on Friday, January 9, 2026, an enormous joint investment in SB Energy totalling $1 billion. And each is contributing $500 million toward constructing the huge power and computer farms that will drive the next generation of artificial intelligence.
This money is reportedly being dedicated for starting the “Stargate” project, a $500 billion plan to set up massive AI data centres across America. AI, as it gets more sophisticated, needs a lot of electricity. The deal illustrates that tech leaders are no longer content with just building software; now they are building their own power plants and energy grids to keep all of their systems running, whether it is a server farm at one of Amazon’s massive data centres, an underwater fibre-optic cable or apps across millions of users’ smartphones.
A Giant “Brain” in the Heart of Texas
At the heart of this deal is a giant site for data centres that would be built across Milam County, Texas. SB Energy has been selected to construct and run a 1.2-gigawatt facility there for OpenAI. For context, 1 gigawatt is roughly enough electricity to keep about 750,000 homes powered up at the same time.
The Texas location will be one of the largest “AI factories” in the world. Since these computers produce so much heat, the new plan will focus on conserving water and employing advanced cooling techniques. The project is projected to bring thousands of construction jobs into the local area and will have its own new power-generating equipment, so it wouldn’t suck electricity from residents.
Why OpenAI Is Going Into ‘Code Red’
As much as this investment is a growth signal, it’s also coming during tense times for OpenAI. And now, it’s feeling a sort of “code red” internally as a result of fierce competition from Google’s latest new Gemini 3 model. New figures indicated that Google had been closing in quickly, and recently the OpenAI CEO Sam Altman told his team to devote all their energy to making ChatGPT better and quicker.
By getting into bed with SB Energy, OpenAI is hoping to secure some of this massive computing power for itself. The company is even pushing back the release of other new products to ensure ChatGPT stays the best option for users. This partnership is a “preferred” transaction and shifts OpenAI and SoftBank to a different method to build these giant computer centres more quickly, and cheaply, than ever before.
The $500-billion “Stargate” Vision
The Stargate project was officially launched from the White House in early 2025, with President Trump rallying to its support. The idea would be to spend half a trillion dollars over some years to ensure that the United States is first in the world in AI technology. This most recent $1 billion is merely a small puzzle piece of the much bigger picture. One of the largest investors in OpenAI already is SoftBank, led by billionaire Masayoshi Son.
By investing directly in the energy company SB Energy, they are ensuring that the physical buildings and power lines are in place when the next generation of AI chips lands. For residents of Milam County, and residents elsewhere who live in AI-friendly towns, this means the “AI revolution” is quickly becoming a part of their own landscape.
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