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SoftBank's data center arm provided a major equity incentive to the AI developer to ensure its occupancy in upcoming facilities. SB Energy issued warrants valued at an estimated $5.5 billion to OpenAI to land the firm as a tenant. The company plans to file for an initial public offering as soon as this week, targeting a raise of $5 billion to $7 billion.
The subsidiary currently operates no data centers and produces no revenue, though it carries a $400 billion contracted backlog. All of its data center tenants are investors, including Nvidia, and the agreement with OpenAI deepens financial ties to support the build-out of projects.
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Key sources
- SOURCE@anissagardizy8“SBE's data center unit, which doesn't yet generate revenue, has a contracted backlog of $400B”x.com
- SUPPORT@wsj“deepens its financial ties with the artificial-intelligence company in an effort to build out projects”x.com
- SUPPORT@anissagardizy8“SB Energy doesn’t have an operating data center today, or data center revenue”x.com
- SUPPORT@techmeme“aiming to raise $5B to $7B”x.com
- SUPPORT@firstsquawk“OpenAI received SB Energy warrants valued at an estimated $5.5 billion”x.com