OpenAI eyes $25 billion investment from SoftBank

OpenAI is facing increasing competition from rivals such as Chinese startup DeepSeek, which has shown the ability to match OpenAI’s capabilities at a lower cost

Japanese conglomerate SoftBank is reportedly in advanced talks to make a substantial $25 billion investment in OpenAI, potentially becoming the AI startup’s largest backer. This potential investment, which is still under discussion, would be in addition to SoftBank’s current commitment of $15 billion to Project Stargate, a joint venture with OpenAI focused on building vital data centre infrastructure to support AI technologies. According to reports, sources familiar with the matter indicate that SoftBank’s OpenAI funding could range between $15 billion and $25 billion, though no final deal has been confirmed.

The partnership between SoftBank and OpenAI was recently showcased during the announcement of Project Stargate, where SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman stood alongside US President Donald Trump. The joint venture, which also includes partners like Oracle Corp. and Abu Dhabi-backed MGX, plans to invest up to $500 billion over the next four years in AI infrastructure, a key component of OpenAI’s future plans.

SoftBank's AI strategy and OpenAI's infrastructure needs

OpenAI is facing increasing competition from rivals such as Chinese startup DeepSeek, which has shown the ability to match OpenAI’s capabilities at a lower cost. This intensifies the need for OpenAI to scale its data centre operations to remain competitive in the growing AI market. Currently, OpenAI relies heavily on Microsoft’s cloud infrastructure, but the company’s investment in building its own infrastructure is crucial to ensuring long-term growth and innovation.

Read Also: OpenAI employees set to sell $1.5 billion in stock to SoftBank

SoftBank’s interest in OpenAI dates back to 2019 when Son initially offered $1 billion in funding, though that deal never materialized. Since then, SoftBank’s strategy has focused on bolstering its involvement in the AI sector, leading to investments such as a $500 million stake in OpenAI and a recent $1.5 billion tender offer to purchase additional shares from OpenAI employees. This continued financial support underscores SoftBank’s commitment to playing a key role in the future of artificial intelligence.

Tech investment news: Skepticism and market reactions

While the news of SoftBank’s potential investment has caused a boost in Asian chip-related stocks, such as Advantest Corp., skepticism about Project Stargate and its financing remains. Figures like Elon Musk have raised concerns about the lack of clarity surrounding the project’s financial backing. Nonetheless, SoftBank is well-equipped to fund such a large-scale venture, with $25 billion in cash reserves and significant holdings in companies like Arm Holdings, which could be tapped to support its AI goals.

As SoftBank continues to support the ChatGPT maker, this OpenAI investment may significantly impact the global AI landscape. With growing interest in AI infrastructure and tech innovation, SoftBank’s strategic direction could play a crucial role in shaping the future of artificial intelligence. Despite some doubts about the execution of Project Stargate, the potential $25 billion investment signals SoftBank’s ambition to become a central figure in AI development. 

Also Read: Microsoft probing if DeepSeek-linked group had unauthorized access to OpenAI data