SoftBank is in discussions to invest up to $25 billion in OpenAI, the company behind ChatGPT. If finalized, this investment would make SoftBank OpenAI’s largest financial supporter. Reports suggest the deal could range between $15 billion and $25 billion, highlighting SoftBank’s strong push into artificial intelligence.
Boosting OpenAI’s Growth and AI Expansion
SoftBank already owns a stake in OpenAI and recently joined a funding round that valued the company at $157 billion. Microsoft, OpenAI’s leading investor, also participated. SoftBank has previously invested in major tech firms like ByteDance (the parent company of TikTok) and Arm (the British chipmaker). This track record underscores its commitment to cutting-edge technology.
To expand AI infrastructure, OpenAI has teamed up with SoftBank and Oracle to develop Stargate, a large-scale data center initiative. Former U.S. President Donald Trump described it as “the biggest AI infrastructure project ever”, with an estimated $100 billion budget. Reports indicate that SoftBank’s investment in OpenAI would also fund its share of the Stargate project.
Despite excitement, some skepticism remains. Elon Musk has publicly questioned whether Stargate’s financial backers have enough capital to execute the ambitious plan. In response, OpenAI’s CEO, Sam Altman, dismissed these doubts, emphasizing that the project would enhance U.S. technological leadership. He also urged Musk to focus on national interests over industry competition.
Increasing Competition and Industry Disruptions
OpenAI is facing rising competition, particularly from China. The new AI startup DeepSeek recently launched a chatbot that quickly became the top free app on Apple’s store. This sudden success led to a drop in AI-related stock prices.
Altman initially welcomed DeepSeek’s emergence, calling the competition “genuinely exciting”. However, OpenAI later expressed concerns that Chinese companies were leveraging its technology to build rival AI systems. These claims have sparked fresh debates over intellectual property and AI ethics.
SoftBank’s CEO, Masayoshi Son, has already presented the investment proposal to OpenAI’s leadership. While the deal is not yet confirmed, it could become one of the biggest AI investments in history. If approved, this funding would further establish OpenAI’s dominance and accelerate advancements in artificial intelligence.