SB Energy Defers ~$50B IPO; Oracle CDS Spreads Tripled on AI Debt

SB Energy, majority-owned by SoftBank, has deferred its planned IPO at roughly a $50 billion valuation as investors question its capital-intensive AI data center strategy. The company has 8.8 gigawatts of data center capacity contracted or under construction but none yet operational, with approximately $178 billion in required capital expenditure financed largely through project-level debt. SB Energy's filings acknowledge substantial dependence on OpenAI as tenant for both the Milam County site and the 8-gigawatt PORTS-Pike campus. Nvidia has provided a $105 billion guarantee covering specified OpenAI lease obligations at PORTS-Pike, but the guarantee is conditional and does not cover SB Energy's full construction program. Oracle faces parallel credit market pressure: its 5-year credit default swap spreads more than tripled between September 2025 and February 2026, with trading volumes surging well above prior norms. An MUFG Americas report attributed the widening to concern about the scale of Oracle's highly debt-funded, extremely capital-intensive AI infrastructure strategy, even as Oracle's core business and profitability remain strong.