SB Energy Files for IPO Targeting $5-7 Billion Despite $3.2 Billion Loss and Zero Revenue

AI data center firm SB Energy, which is backed by Softbank, Nvidia and OpenAI, files for IPO

* SB Energy has filed for an initial public offering with the Securities and Exchange Commission. * The AI power infrastructure company is backed by Softbank, OpenAI and Nvidia. Sam Altman was also an early investor. * The company hasn't yet generated any revenue from the data center portion of its business, and none of its data centers are operational as of the filing date. In this article * OPENAI.FG * SFBQF * SFBQF * NVDA Follow your favorite stocksCREATE FREE ACCOUNT Tomohiro Ohsumi | Bloomberg | Getty Images SB Energy, the artificial intelligence power infrastructure company backed by Softbank, OpenAI and Nvidia, has filed for an initial public offering with the Securities and Exchange Commission. Among the risk factors listed in the Tuesday filing, SB Energy said it's "substantially dependent" on the performance of OpenAI as both a tenant and equity investor. OpenAI CEO Sam Altman was an early personal investor in the company as well. "This concentration means that our near-term revenues, project-level financing arrangements, and development plans are significantly linked to OpenAI's continued performance under our lease and related agreements," the filing states. The company relies heavily on outside financing from partners for its data center campuses, and hasn't yet generated any revenue from that portion of its business, according to the SEC filing. None of SB Energy's data centers are operational yet. For the first half of 2026, SB Energy incurred net losses of roughly $3.2 billion, citing "substantial investments" in its data center strategy, and generated about $139 million in revenue mostly from its legacy energy business over the same period. Nvidia announced in August that it would provide $105 billion in financing for an OpenAI data center in Ohio that will be built by SB Energy. "The reason Nvidia is on our part of the equation here is that, you know, helps us to unlock things like investment-grade financing. It helps to ensure the project is a success," CEO Rich Hossfeld told CNBC's "Squawk Box" after the financing announcement. Read more CNBC tech news The company will trade on the Nasdaq and Nasdaq Texas under the ticker symbol SBE. Softbank is the controlling shareholder. While the company hasn't announced pricing or a specific timeline for its debut, it could begin trading as soon as this month, The Wall Street Journal reported. According to the Journal, the company is looking to raise between $5 billion and $7 billion from the offering. The IPO prospectus also flagged the growing public backlash against data centers as a risk factor. "We may face community opposition, local moratoria and hyper-local dissent, including growing public resistance to AI and AI-related infrastructure, that may adversely affect our data center and power generation businesses and operations," the filing read. Among other risks the company disclosed in its S-1 were technological advancements that "could render our facilities obsolete or unmarketable," failure of businesses to adopt AI, regulatory changes and decelerating capex from hyperscalers. watch now VIDEO6:3206:32 SB Energy co-CEO on PORTS-Pike project: Nvidia's financing will help ensure the project's success Squawk Box Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

SoftBank's SB Energy AI infrastructure unit files to go public

SoftBank's SB Energy AI infrastructure unit files to go public SB Energy Inc., a developer of data centers and electrical infrastructure, today filed for an initial public offering. The SoftBank Group Corp. unit didn't specify how much it's hoping to raise. Over the weekend, the Wall Street Journal reported that SB Energy is looking to sell between $5 billion and $7 billion in shares. Sources earlier told Reuters that it could seek a valuation in excess of $50 billion. SB Energy lost $3.2 billion on just $139 million in sales during the first half of the year. According to the company's prospectus, practically all its revenue came from energy infrastructure projects. SB Energy operates a 900-megawatt solar farm in Texas that supplies power to a Google LLC data center. It's also building two energy storage facilities in California, one of which will include a 580-megawatt solar array. SB Energy's long-term growth strategy revolves around its data center business. The business generated practically no revenue in the first half 2026, but has a massive $430 billion project backlog. SB Energy's flagship project is a 10-gigawatt data center campus that it's building in Ohio for OpenAI Group PBC. The PORTS-Pike development, as it's called, will feature closed-loop cooling systems designed to minimize water use. SB Energy and OpenAI plan to meet the campus' energy requirements by building a power plant nearby for $33 billion. They will link the plant to the site using $4.2 billion worth of new power transmission lines. Nvidia Corp., a major investor in both companies, is backstopping the project. According to the IPO filing, it will provide a "residual value guarantee" worth up to $105 billion for 4.25 gigawatts of capacity at PORTS-Pike. The chipmaker has the option to backstop another 3.78 gigawatts later on. If it doesn't, OpenAI will be obliged to secure a different guarantor. SB Energy's financial partnership with Nvidia also extends to other areas. According to the IPO prospectus, the chip giant has committed to buying $1.5 billion worth of shares at the listing price. OpenAI, for its part, has received stock warrants worth $5.5 billion. PORTS-Pike is one of three data center campuses that SB Energy is building for the ChatGPT developer. The other two, which are located in Texas, will have a combined capacity of 1.59 gigawatts when they become fully operationally. SB Energy's prospectus flags the fact that it's "substantially dependent on OpenAI" as a potential risk. Another section of the document argues that the SoftBank unit's ability to developer both power and technology infrastructure is a competitive differentiator. According to the company, its vertically integrated approach makes it easier to optimize customers' electricity costs. SB Energy plans to list its shares on the Nasdaq under the ticker symbol "SBE."

SoftBank-backed SB Energy files for U.S. IPO as AI turbocharges infrastructure demand

SB Energy recorded a 66.4 per cent revenue jump in the first half of 2026, the SoftBank-backed 9984.T data center developer disclosed on Tuesday in paperwork for its U.S. IPO, as AI infrastructure companies seek to tap surging investor appetite. The company reported a net loss of US$3.21 billion on revenue of $138.7 million for the six months ended June 30, compared with a net loss of $215.5 million on revenue of $83.3 million a year earlier. Investors have shown interest in companies supporting the broader AI infrastructure ecosystem, as hyperscalers and technology firms pour billions of dollars into expanding data centers to meet soaring demand for computing. AI infrastructure firm CoreWeave's CRWV.O shares have more than doubled since their debut last year, while data center operator Switch has tapped banks for an IPO as soon as the fourth quarter, Reuters has reported. "While 92 per cent of companies plan to increase AI spending over the next three years, just 1 per cent of business leaders classify their companies as mature on the AI deployment spectrum, indicating that even today's adopters are early in their multi-year investment cycle," SB Energy said in its filing. AI infrastructure investment by the world's largest hyperscalers is expected to exceed $1.3 trillion by 2027, according to S&P Global Ratings. "SB Energy gives investors a great opportunity to take advantage of sector growth without having to try and pick AI winners and losers from the various leading hyperscalers," said Samuel Kerr, global head of equity capital markets at Mergermarket. Still, the listing will be a key test of demand as the AI infrastructure trade has come under renewed pressure over concerns about the sustainability of the spending boom. NVIDIA TO INVEST $1.5 BILLION IN PRIVATE PLACEMENT Nvidia has committed to invest $1.5 billion in a private placement at the IPO price, while OpenAI has been issued warrants worth roughly $5.5 billion, SB Energy reported in the prospectus. OpenAI and SoftBank had earlier this year invested $500 million each in SB Energy as part of the Stargate initiative to build AI data centers. Private capital firm Ares Management ARES.N is also a long-standing investor in the company. SB Energy, which has a backlog of roughly $439 billion, currently does not have any operational data centers and is substantially dependent on OpenAI, according to its filing. "Investors have to be convinced that hundreds of billions of contracted demand can be turned into cash flow over the coming years," said IPOX Research Associate Lukas Muehlbauer. SoftBank and OpenAI are customers at three of its data center campuses through long-term data center leases, SB Energy said. Those lease payments are expected to account for a major portion of the company's near-term data center revenue. "OpenAI's 20-year leases are reassuring from a contractual perspective, but they also stretch across an unusually long horizon for an industry evolving this quickly. Few people can say with much confidence what the AI landscape will look like even five or ten years from now," Muehlbauer said. Redwood City, California-based SB Energy in the filing signaled plans to broaden its customer base and pursue acquisitions to accelerate growth. The company and OpenAI are highly dependent on Nvidia for providing the chips needed for the sprawling data center being developed in Ohio, according to the filing, referring to the massive campus SB Energy is developing for the ChatGPT maker. A wave of multi-billion-dollar AI, cloud and chip deals in the past few months has sharpened the scrutiny around AI's circular economy, where the biggest funders become the biggest customers. The companies have said that the deals were not circular financing, but rather investments to accelerate the AI buildout. Founded in 2019, SB Energy focuses on pairing power generation with data centers ⁠to help address AI's growing energy constraints. The firm has 8.8 gigawatts of total data center capacity contracted or under construction. SB Energy plans to sell new shares. Reuters had reported the company could seek a valuation of more than $50 billion in its IPO. JPMorgan, Goldman Sachs, Morgan Stanley, Citigroup and Mizuho are joint lead book-running managers. SB Energy will list on the Nasdaq and Nasdaq Texas under the symbol "SBE."

SB Energy Files for IPO With Backing From Nvidia, OpenAI -- Update

SB Energy, an AI infrastructure platform backed by SoftBank, has registered for an initial public offering. The company, which is majority-owned by Masayoshi Son's SoftBank, said Tuesday it will remain as a controlled company under SoftBank and trade on Nasdaq under the symbol SBE. It hasn't yet determined the number or pricing of shares in the proposed offering. SB Energy aims to raise between $5 billion and $7 billion, the Wall Street Journal has reported. As part of the offering, Nvidia has committed to invest $3 billion in the company. That is split evenly between a private placement for Nvidia that will close alongside the IPO, and a prepaid forward contract. SB Energy also issued 4.0 million warrants to OpenAI. The maker of ChatGPT will also hold a board designation right, as long as it owns more than 5% of outstanding capital stock. The Journal has also reported that OpenAI has issued warrants worth an estimated $5.5 billion in SB Energy. SoftBank and OpenAI are customers at three of SB Energy's data center campuses through long-term leases. The lease payments under those arrangements are expected to constitute a significant portion of SB Energy's near-term revenue, the company said in its IPO filing. Right now, no data center capacity is currently operational. SB Energy expects to start generating revenue from data centers in the fourth quarter of this year. SB Energy said it has 8.8 gigawatts of contracted data center capacity, of which 803 megawatts are currently under construction. It has 5.5 gigawatts in standalone solar and battery storage. Its biggest campus, Ports-Pike Technology in Ohio, is slated to offer 10 gigawatts of gross power load required from the grid once fully constructed. The site is supported by a consortium between SB Energy, OpenAI and Nvidia, and is expected to be the world's biggest data center campus. SB Energy said the Ports-Pike campus alone could require more than $6 billion in credit support, which could be in the form of letters of credit that are not reflected in its current balance sheet. SB Energy plans to pay SoftBank royalties of 1% of its gross profit under its trademark license agreement with the firm. The company has also committed to pay an aggregate of $50 million through 2028 for OpenAI software and tools, it said. SB Energy said it intends to offer shares to retail investors who are tax residents and located in the U.K. via a public offer platform operated by Marex Financial.

SB Energy Files for IPO With Nvidia Backing

SB Energy, an AI infrastructure platform backed by SoftBank, has registered for an initial public offering. The company, which is majority-owned by Masayoshi Son's SoftBank, said Tuesday it plans to trade on Nasdaq under the symbol SBE, and hasn't yet determined the number or pricing of shares in the proposed offering. SB Energy aims to raise between $5 billion and $7 billion, the Wall Street Journal has reported. As part of the offering, Nvidia has committed to buy $1.5 billion of a new class of non-voting equity securities in a private placement at a price per share equal to the IPO price. That commitment is scheduled to close simultaneously with the IPO's closing. The Journal has also reported that OpenAI has issued warrants worth an estimated $5.5 billion in SB Energy. SB Energy said it intends to offer shares to retail investors who are tax residents and located in the U.K. via a public offer platform operated by Marex Financial.