OpenAI and SoftBank Group Corp. invest $1 billion in SB Energy to support AI expansion in the U.S. The deal includes a $500 million commitment from each party, with no disclosed valuation. SB Energy will build a 1.2-gigawatt data center in Texas, emphasizing the need for reliable electricity for AI development.

Tech companies are investing in energy assets to meet rising power demands for AI models. Meta Platforms Inc. secures deals for over 6 gigawatts of nuclear power for its data centers. SB Energy, previously focused on renewable energy, now operates data center campuses, with recent funding for multi-gigawatt projects.

The investment in SB Energy aligns with OpenAI’s Stargate initiative, aiming to spend $500 billion on AI infrastructure with partners like SoftBank and Oracle Corp. The first site in Abilene, Texas, is already in progress. However, concerns arise about concentration risk if AI demand does not meet expectations.

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Read more at Yahoo Finance: SB Energy Lands $1 Billion From OpenAI and SoftBank