SoftBank is in talks to invest up to $25 billion in OpenAI, the company behind ChatGPT. If completed, this investment would make SoftBank OpenAI’s largest financial backer. Reports suggest the amount could range between $15 billion and $25 billion, reinforcing SoftBank’s strong interest in artificial intelligence.
Expanding OpenAI’s Reach and Infrastructure
SoftBank already holds a stake in OpenAI and recently participated in a funding round valuing the company at $157 billion. Microsoft, OpenAI’s biggest shareholder, also took part. SoftBank’s extensive tech portfolio includes ByteDance (TikTok’s parent company) and Arm (the British chip designer). These investments reflect its focus on transformative technology.
As part of its AI expansion, OpenAI has partnered with SoftBank and Oracle to develop Stargate, a large-scale data center project. Former U.S. President Donald Trump described it as “the largest AI infrastructure project in history”, with an initial budget of $100 billion. Reports indicate that SoftBank’s proposed investment in OpenAI would also support its commitment to Stargate.
Despite excitement, some doubts remain. Elon Musk has questioned whether Stargate’s backers have enough funding to execute the plan. However, OpenAI’s CEO, Sam Altman, dismissed these claims, calling the project a huge step for U.S. innovation. He also urged Musk to focus on what benefits the country rather than business competition.
Intensifying AI Competition and Global Challenges
OpenAI faces increasing competition, particularly from China. The new AI startup DeepSeek recently launched a chatbot that quickly topped Apple’s free app store rankings. Its rapid success led to a sharp drop in AI-related stock prices.
Altman initially praised DeepSeek, calling it “legitimately invigorating” to have a strong new competitor. However, OpenAI later raised concerns about Chinese companies using its technology to create rival AI models. These allegations have sparked new discussions about intellectual property rights and AI security.
SoftBank’s CEO, Masayoshi Son, has presented the investment proposal to OpenAI’s leadership. While the deal remains unfinalized, it could become one of the largest AI investments in history. If approved, this funding would strengthen OpenAI’s position as a global AI leader, allowing it to expand research and stay ahead in the competitive AI landscape.
