SoftBank Eyes $25 Billion Investment in OpenAI

SoftBank Group is in advanced talks to invest up to $25 billion in OpenAI, which owns the popular artificial intelligence model ChatGPT. The Japanese conglomerate is looking to become OpenAI’s most prominent financial backer as part of its strategic push to expand its influence in the rapidly growing AI sector.

The potential investment, ranging between $15 and $25 billion, would directly contribute to the Microsoft-backed OpenAI. This comes in addition to SoftBank’s earlier commitment of $15 billion to Stargate, a joint venture that includes Oracle, OpenAI, and SoftBank. The venture aims to contribute up to $500 billion to ensure the United States maintains its competitive edge in the global AI race, especially against rivals like China.

SoftBank’s substantial investment into OpenAI and Stargate is part of a broader vision to make significant strides in artificial intelligence, further solidifying its position as a key player in the technology landscape. The Information previously reported on the company’s plans to inject up to $40 billion into OpenAI and Stargate. It also noted that SoftBank had started talks to secure up to $18.5 billion in financing, potentially backed by its publicly listed assets.

The Stargate venture was unveiled at the White House last week, with U.S. President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison all in attendance. This announcement marked a high point in SoftBank’s expansion into AI, signaling its commitment to fueling innovation in artificial intelligence and reinforcing the U.S.’s leadership in technology.

SoftBank Eyes $25 Billion Investment in OpenAI

However, SoftBank’s ambitions in AI have faced headwinds following the rise of DeepSeek, a lesser-known Chinese startup that has recently shaken up the market with a new free AI assistant. DeepSeek claims to have developed the assistant at a fraction of the cost of its U.S. counterparts, utilizing lower-cost chips and less data. The disruptive technology has caused market fluctuations, with SoftBank’s share price surging after the Stargate announcement but falling by over 12% due to the DeepSeek-induced selloff. On Thursday morning, SoftBank’s shares were down around 1%.

Despite the setbacks, SoftBank’s CEO Masayoshi Son remains resolute in his plans to secure a major stake in OpenAI. Senior executives and the board at OpenAI reportedly have vetted the proposal. This follows SoftBank’s previous $1.5 billion stake in OpenAI, secured last year.

OpenAI, founded in 2015, was valued at an impressive $157 billion during its last funding round, securing its position as one of the world’s most valuable private companies. With its state-of-the-art artificial intelligence products like ChatGPT, OpenAI has become a central player in the rapidly evolving AI ecosystem.

As SoftBank continues to make bold moves to secure its place in the future of artificial intelligence, the company’s decision to invest heavily in OpenAI and the Stargate initiative underscores its commitment to maintaining leadership in one of the most lucrative and transformative sectors of the global economy.

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