SB Energy Grants OpenAI $5.5 Billion in Stock Warrants
SoftBank-owned SB Energy has granted OpenAI stock warrants valued at $5.5 billion as part of a deal to bring the AI company on board as a tenant, according to draft IPO documents reviewed by The Wall Street Journal. These warrants were initially estimated at $3.6 billion in January and rose significantly over time. SB Energy is preparing for an imminent public listing that could raise between $5 billion and $7 billion. The move highlights the deep financial ties among SoftBank, OpenAI, and SB Energy, with both companies serving as tenants and investors of SB Energy. OpenAI has already invested $500 million in SB Energy earlier this year and is expected to own a small percentage post-IPO. The warrants will be unlocked based on market capitalization thresholds. SB Energy also plans to spend at least $50 million on OpenAI products by 2028, while the company's financial risks are tied heavily to its reliance on OpenAI’s stability and Nvidia’s support for a major data center project in Ohio.
Topics: AI data centers investments IPOs