SB Energy Issues $5.5 Billion in Warrants to OpenAI

SB Energy, a data-center venture majority-owned by SoftBank, issued warrants valued at approximately $5.5 billion to OpenAI to secure the AI company as a primary tenant. The deal is part of a broader strategy as SB Energy prepares for an initial public offering intended to raise between $5 billion and $7 billion.

OpenAI signed 17 leases for roughly eight gigawatts of computing capacity at a planned campus in southern Ohio. In exchange, SB Energy committed to purchasing at least $50 million of OpenAI software and services through 2028.

Draft IPO documents highlight a deep interdependence between the companies, noting that SB Energy is substantially dependent on OpenAI. To finance the Ohio project, SB Energy also requires a residual value guarantee from Nvidia. The chip maker has committed $3 billion to SB Energy through private transactions linked to the upcoming IPO.