SoftBank is reportedly in advanced discussions to invest up to $25 billion in OpenAI. SoftBank is in talks to invest $25 billion in OpenAI, making it the largest investor in the ChatGPT maker. If finalized, the deal would make the Japanese conglomerate the largest single investor in the ChatGPT maker, surpassing Microsoft’s $13 billion investment. The potential investment is part of a broader AI collaboration that could see SoftBank commit more than $40 billion.
Both companies have already announced a $100 billion joint investment in Stargate, a U.S.-based data center project designed to support OpenAI’s growing AI infrastructure needs. Over the next four years, the project could scale up to $500 billion. SoftBank has already committed $15 billion to the initiative.
As part of the broader investment plan, SoftBank may inject between $15 billion and $25 billion directly into OpenAI, adding to its Stargate commitment. OpenAI itself is expected to contribute around $15 billion to the project, with SoftBank’s investment likely covering this amount.
Financial Structure of the Deal
Sources indicate that about 20% of the total funding for Stargate will come from equity investments, while the rest will be secured through debt financing backed by assets and cash flow. The large-scale funding comes as AI competition intensifies, with Chinese firm DeepSeek launching the R1 model, which challenges the need for costly AI infrastructure.
OpenAI has accused DeepSeek of using its proprietary AI models through a process called “distillation.” This method allows developers to create smaller yet efficient models at a lower cost. OpenAI claims this violates its terms of service, which prohibit using its outputs to train competing models.
Strategic Implications of SoftBank’s Investment
SoftBank is in talks to invest $25 billion in OpenAI, a move that could reshape the AI industry and reduce OpenAI’s reliance on Microsoft. If the deal goes through, it could significantly reduce OpenAI’s reliance on Microsoft for computing power. Microsoft recently agreed to give up its exclusive position as OpenAI’s cloud provider, allowing the AI firm to seek alternative cloud solutions.
SoftBank’s CEO, Masayoshi Son, views this investment as a crucial step in his long-term vision for AI. His previous investments include a $16 billion commitment to WeWork. The partnership with OpenAI aligns with his broader goal of advancing artificial intelligence, including AI-powered chips, robotics, and data centers.
OpenAI’s Valuation and Future Plans
SoftBank is in talks to invest $25 billion in OpenAI, as part of a broader AI collaboration that includes the $100 billion Stargate data center project. OpenAI has raised around $20 billion from investors, including Microsoft, and was valued at $157 billion in 2024. SoftBank acquired a $2 billion stake in the company last year. CEO Sam Altman is actively exploring ways to diversify funding and reduce dependence on Microsoft’s infrastructure.
The AI leader is also considering shifting to a for-profit structure to attract additional investment. This transformation could allow OpenAI to secure billions more in funding for future AI advancements.
The discussions with SoftBank have been ongoing for months. If the investment exceeds $40 billion, it will mark one of the biggest bets ever by SoftBank, surpassing its previous high-profile deals.
SoftBank’s investment could help OpenAI expand its AI capabilities and reduce its dependence on Microsoft. With Microsoft no longer OpenAI’s exclusive cloud provider, SoftBank’s funding could allow OpenAI to build its own infrastructure, develop AI chips, and scale operations more independently. This strategic shift aligns with SoftBank CEO Masayoshi Son’s long-term vision for AI dominance.
