News

SoftBank considers major investment in OpenAI

Thursday 30 January 2025 11:31 CET | News

SoftBank has engaged in discussions to invest up to USD 25 billion in OpenAI, a move that would make it the largest financial backer of the AI company.

 

The potential investment is part of a wider collaboration between the two entities on a large-scale AI infrastructure initiative. 

Last week, OpenAI and SoftBank announced plans for a joint venture to develop Stargate, a data centre project expected to cost USD 100 billion initially, with potential expansion to USD 500 billion over the next four years. The initiative has received public attention, including from President Donald Trump.

 

SoftBank has engaged in discussions to invest up to USD 25 billion in OpenAI, a move that would make it the largest financial backer of the AI company.

 

SoftBank's expanding role in AI

As part of the discussions, SoftBank is considering a direct investment of between USD 15 billion and USD 25 billion in OpenAI, in addition to committing over USD 15 billion to the Stargate project, according to individuals familiar with the negotiations cited by Financial Times. If finalised, SoftBank’s total financial involvement in OpenAI and Stargate could exceed USD 40 billion. 

OpenAI is expected to contribute around USD 15 billion to Stargate, and sources indicate that SoftBank’s potential equity investment could help finance OpenAI’s share of the infrastructure project. 

The negotiations, which remain ongoing, align with SoftBank founder Masayoshi Son’s strategic focus on artificial intelligence. A significant stake in OpenAI would enhance SoftBank’s role in AI development and innovation. If the investment reaches USD 15 billion or more, SoftBank would surpass Microsoft as OpenAI’s largest single investor. Microsoft, which began investing in OpenAI in 2019, remains the company’s biggest shareholder. 

According to the Financial Times, SoftBank’s head has pursued a relationship with OpenAI CEO Sam Altman for years, aiming to position himself as a major player in AI advancements. He views a larger stake in OpenAI as a crucial step in achieving his vision of artificial general intelligence, a technology that surpasses human cognitive capabilities.  

His AI-related interests extend beyond software to include power generation, robotics, and semiconductor development. Some sources cited by the Financial Times suggest that SoftBank-owned Arm may still have ambitions to produce AI-specific chips.


Source: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: artificial intelligence, investment, funding, partnership
Categories: Banking & Fintech
Companies: OpenAI, SoftBank
Countries: United States
This article is part of category

Banking & Fintech

OpenAI

|

SoftBank

|
Discover all the Company news on OpenAI and other articles related to OpenAI in The Paypers News, Reports, and insights on the payments and fintech industry: