SoftBank is reportedly set to invest between $15 billion and $25 billion in OpenAI, potentially making it the startup's top backer, according to sources familiar with the matter. This move marks another significant chapter for OpenAI, which is currently transitioning from its nonprofit roots to a for-profit structure to scale its operations and compete more aggressively in the burgeoning generative AI sector.
The discussions around this vast investment follow the recent announcement of Stargate, a joint initiative involving SoftBank, OpenAI, and Oracle, unveiled at the White House by President Trump last week. This project, which aims to bolster U.S. AI infrastructure, is part of SoftBank's broader investment strategy, with founder Masayoshi Son expressing ambition to develop 'superintelligence' beyond human cognition.
OpenAI, founded as a nonprofit organization in 2015, has triggered a boom in generative AI since launching its ChatGPT model at the end of 2022. This revolution has drawn significant investments, with Microsoft being its key historical investor, contributing up to $13 billion. Currently, OpenAI is valued at approximately $157 billion but is exploring opportunities to raise its valuation to as high as $340 billion through this anticipated funding round.
Despite its impressive growth and backing from leading industry players, OpenAI faces mounting competition. Recently, the entry of Chinese startup DeepSeek has stirred the market, with its AI assistant gaining rapid traction for being developed at lower costs and competing on performance. DeepSeek's successful ascent highlights the challenges for OpenAI as they navigate this intensely competitive environment.
The expected SoftBank investment not only aims to help OpenAI thrive but also supports its commitment to the Stargate initiative, which is set to inject billions of dollars back to the U.S. AI ecosystem. Reports suggest the round could total around $40 billion, with SoftBank potentially being the largest single investor.
OpenAI's CEO, Sam Altman, acknowledged the competitive pressure when describing DeepSeek’s model as 'impressive' and highlighting the vitality of competition to drive innovation and improvement within the industry.
While the talks between SoftBank and OpenAI are still confidential and have yet to be finalized, the existing groundwork is clear. If completed, SoftBank's investment would bolster OpenAI's resources significantly, making it poised to expand its offerings and capabilities even more dramatically.