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By Michelle Ma, Shirin Ghaffary,
and Brian Eckhouse
OpenAI and SoftBank
Group Corp. have jointly invested $1 billion in
SB Energy, an infrastructure company that’s
working with the tech firms on a massive US
buildout of data centers to power artificial
intelligence.
OpenAI and SoftBank
will each invest $500 million in SB Energy to
support the energy firm’s growth as a data
center developer and operator, the companies
said in a statement Friday. OpenAI also said it
has selected SB Energy to build and operate its
1.2 gigawatt data center in Milam County, Texas.
A single gigawatt is enough to power roughly
750,000 US homes at any given moment.
The
SoftBank logo at the company's headquarters,
in Tokyo. Photographer: Toru
Hanai/Bloomberg
The need for power
is leading some tech firms to invest in
suppliers or plants, or line up their own energy
sources. Meta Platforms Inc. on Friday said it
has agreed to deals that could ultimately total more
than 6 gigawatts of nuclear power.
SB Energy, which
has long been backed by SoftBank, was founded as
a renewable and storage developer, but has in
recent years expanded into developing, owning
and operating data centers. The new funding
follows SB Energy lining up $800 million last
year from Ares Infrastructure Opportunities
funds.
The tie-up with
SoftBank and OpenAI adds to a growing web of interconnected
deals between tech companies that are
helping to prop up the AI sector and raising
concerns about the possible fallout if demand
for artificial intelligence falls short of
expectations. SoftBank is one of OpenAI’s
largest investors.
Read the full
story.
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This week on Zero, US Senator Sheldon Whitehouse
joins Akshat Rathi to discuss why the US is
acting like a petro bully, how countries can
resist an increasingly aggressive Trump
administration and why Democrats are making a
mistake by shying away from talking about
climate action.
Listen now, and
subscribe on Apple, Spotify or YouTube to
get new episodes of Zero every Thursday.
Venezuela isn’t the
only place being bullied by Trump. The
US president has also honed in on Greenland,
saying “we have to have it.” He escalated
his rhetoric on Friday, saying that “we
are going to do something on Greenland whether
they like it or not,” adding that “if we don't
do it the easy way, we're going to do it the
hard way.” Trump’s administration has also
considered sending money to Greenlanders,
according to Reuters, an idea that
lawmakers have rejected.
The intense
interest in the island nation is being driven by
national security concerns as well as accessing
Greenland’s vast resources. The reason those two
issues are on the radar? A warming world is
making the Arctic more accessible.
Your weekend
read comes from Andrea Palasciano, Sanne Wass, and Kirsi Heikel, who
break down what’s happening in Greenland and how
Europe is weighing its response to the US. For
more reporting on the growing geopolitical
tensions around the island, please
subscribe to Bloomberg News.
The
Greenland coastline Photographer: Odd
Andersen/Getty Images
In this new era of
bare-knuckle politics, Greenland is the perfect
prey for Trump.
The island is in a
resource-rich and strategically crucial Arctic
region, where both Russia and China have growing
ambitions. It also has a special relationship
with the US via a 1951 defense agreement
allowing the US to build military bases on the
island.
Greenland — as
large as Texas and California combined but with
just under 60,000 inhabitants — has no standing
army of its own, and Copenhagen controls its
security and foreign policy. However, the
territory is self-governing and controls most
internal affairs, and has not been a Danish
colony since 1953.
In recent years,
the Arctic has become a geopolitical hotspot.
Russia has been
flexing its muscles in the region, banking on
the melting ice to develop a new, shorter
shipping route along its northern edge. China,
one of Russia’s main supporters in its invasion
of Ukraine, is similarly eyeing the routes and
showing its own Arctic ambitions.
NATO has taken
notice, starting to develop more cohesive Arctic
security efforts. But not fast enough for
everyone.
Trump also loves to
defy his naysayers, and achieving something his
predecessors didn’t would offer him the kind of
grand, historic gesture he relishes.
Crucially,
Greenland falls into a political gray zone. The
territory is technically not an EU or NATO
member, even though it theoretically enjoys many
of the organization’s protections. That makes
Greenland a relatively soft target for Trump,
whose team has openly stated that no one would
fight the US over the remote land.
“What we’re asking
our European friends to do is to take the
security of that land mass more seriously,”
Vance said on Thursday. “Because if they're not,
the United States is going to have to do
something about it. What that is, I'll leave
that to the president.”
European officials
are now furiously working the phones, trying to
grasp at whatever levers they can find. US NATO
Ambassador Matthew Whitaker was hounded with
calls throughout the week as flummoxed diplomats
tried to determine the severity of Trump’s
comments.
Read the full
story to find out how European diplomats
are scenario planning.
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