SB Energy, the SoftBank-owned power and data centre developer, has issued warrants worth approximately $5.5 billion to OpenAI as part of a deal that sees the AI company commit to a 20-year lease. The Wall Street Journal reported the arrangement on Monday. It's a striking example of how far energy firms will go to secure long-term tenants in the AI boom.
Why the warrants
The warrants are an incentive. SB Energy wanted to keep OpenAI as a tenant, and instead of cutting the rent or offering cash, it handed over equity-like instruments. The warrants give OpenAI the right to buy SB Energy shares at a set price in the future, so if the company's value rises, OpenAI benefits. That's a bet on SB Energy's own growth, tied to the data centre business.
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A 20-year bet on AI power demand
The lease itself is a long-term commitment. Twenty years of guaranteed power consumption is a big deal for an energy developer. It means SB Energy can plan its infrastructure around a known customer. The deal also signals that AI companies are willing to make multi-billion-dollar commitments to secure energy, which could intensify competition for power in regions with abundant renewable resources.
The crypto angle is indirect but real. AI data centres and crypto miners both need cheap electricity. If AI companies are willing to pay a premium — in this case, billions in warrants — to lock in power, miners could find themselves priced out. The analysis from our desk suggests miners will need to diversify energy sources or secure long-term contracts with equity incentives of their own, or risk being squeezed by AI-driven demand.
There's also a financial angle. The warrants are a synthetic equity position in OpenAI, and they could theoretically be tokenized or used as collateral in decentralized finance. That would create a direct link between AI equity and crypto liquidity, something DeFi protocols have been eyeing. It's a long shot, but the structure of this deal makes it possible.
The Wall Street Journal's report didn't say when the lease would take effect, or how the warrants would be structured. Those details will matter for anyone watching the intersection of AI, energy, and crypto.
