SB Energy is planning to grant OpenAI $5.5 billion in stock options and is expected to file for an IPO as early as this week

Dynamic Beating AI News Flash: SoftBank's SB Energy is planning to grant OpenAI, a major data center client, options with a current valuation of approximately $5.5 billion. SB Energy could potentially file for an IPO as early as this week, aiming to go public next month with a target fundraising of $5 billion to $7 billion.

SB Energy, originally focused on solar and storage projects, has not yet operationalized any data centers. However, they have signed contracts for nearly 9 gigawatts of data center capacity, with around 800 megawatts under construction. This month, OpenAI signed 17 leases with SB Energy, securing around 8 gigawatts of computing capacity in a project in southern Ohio under a 20-year lease agreement, with the first facilities expected to be delivered in 2028. SB Energy intends to disclose in its IPO filing that its data center business has a contract backlog of over $400 billion.

Earlier this year, OpenAI invested $500 million in SB Energy and is expected to hold a single-digit percentage stake post-IPO, while retaining the aforementioned options. Additionally, SB Energy has committed to purchasing at least $500 million worth of OpenAI's software and services by 2028.

Furthermore, NVIDIA plans to invest $3 billion through two private transactions related to SB Energy's IPO and provide some financing credit support for the Ohio project. The arrangements cover approximately 4.25 gigawatts of IT load, with an additional 3.8 gigawatts of capacity potentially supported. The total cumulative maximum payment obligation under the initial arrangement amounts to $105 billion.

In the first half of 2026, SB Energy had revenues of around $140 million, a 66% year-over-year increase, but its net loss widened to $3.2 billion, primarily impacted by the revaluation of OpenAI options. As the company's valuation increased, the valuation of the options rose from $3.6 billion to $5.5 billion, leading to an increase in the recorded financial liability.