SB Energy gave OpenAI $5.5bn in warrants to sign a 20-year lease

SB Energy has handed OpenAI warrants now worth about $5.5bn, and it did so to keep OpenAI as a tenant. The Wall Street Journal reported the arrangement on Monday.

The direction matters and is easy to get backwards. SB Energy, the SoftBank-owned power and data centre developer, is the issuer, and OpenAI is the recipient, which makes this a landlord paying its anchor tenant rather than a customer taking a stake.

The instruments were granted in January and valued then at $3.6bn. By the end of June, they were worth $5.5bn, an increase of roughly $1.9bn driven by the rising value of the underlying equity rather than by anything OpenAI did.

What they buy is a signature on a very long lease. OpenAI has committed to 20 years at SB Energy’s planned campus in southern Ohio, a ten-gigawatt site announced in mid-August with first operations targeted for 2028.

OpenAI and...

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