SoftBank Plans Up to $25 Billion Investment in OpenAI
SoftBank Group Corp (9984.T) is reportedly in discussions to invest between $15 billion and $25 billion in OpenAI, the Microsoft-backed artificial intelligence company. According to a source familiar with the matter, this move aligns with the Japanese conglomerate’s continued push into the AI sector.
SoftBank’s Expanding Role in OpenAI and Stargate
A portion of SoftBank’s investment may contribute to OpenAI’s financial commitment to Stargate, a joint AI venture involving Oracle, OpenAI, and SoftBank. Stargate aims to invest up to $500 billion to help the US maintain its competitive edge in AI development against China and other global rivals.
SoftBank has already pledged $15 billion to Stargate. The potential additional investment in OpenAI would be separate from this existing commitment. Discussions are still in the early stages, and details of the investment structure remain unclear.
SoftBank’s AI Ambitions and Market Reactions
Previously, The Information reported that SoftBank was planning a total investment of $40 billion in both Stargate and OpenAI. To support this, the company has been exploring financing options, including borrowing up to $18.5 billion using its publicly listed assets as collateral.
The Stargate initiative was announced last week at the White House by former US President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison. However, the AI market has faced unexpected disruptions following the emergence of DeepSeek, a Chinese startup that introduced a free AI assistant developed with lower-cost chips and minimal data.
SoftBank’s stock initially surged on the news of Stargate but has since dropped over 12% due to market concerns triggered by DeepSeek. On Thursday morning, SoftBank shares were down by around 1% in trading.
OpenAI’s Valuation and SoftBank’s Stake
OpenAI, now valued at $157 billion following its latest funding round, remains one of the most valuable private companies globally. SoftBank previously took a $1.5 billion stake in OpenAI last year. The company’s board and senior executives have reportedly reviewed CEO Masayoshi Son’s plan to expand SoftBank’s involvement with OpenAI and Stargate.
Both OpenAI and SoftBank declined to comment on the ongoing discussions.
with inputs from Reuters