SoftBank is in discussions to invest up to $25 billion in OpenAI, as part of a potential collaboration that could see the Japanese conglomerate allocating over $40 billion toward AI ventures with the Microsoft-backed startup. This development was reported by the Financial Times, citing individuals familiar with the negotiations.
This potential investment would position SoftBank as OpenAI's largest investor, surpassing Microsoft, which has so far invested nearly $14 billion. However, due to Microsoft's prior financial commitment, SoftBank's stake in OpenAI's for-profit division would be comparatively smaller.
The proposed investment follows the recent announcement of a collaboration between SoftBank and OpenAI to spearhead a joint initiative, the Stargate project—a large-scale data center venture endorsed by former US President Donald Trump—with plans to potentially increase the total investment to $500 billion over the next four years.
Further, SoftBank is contemplating an additional investment ranging from $15 billion to $25 billion directly into OpenAI, supplementing its more than $15 billion commitment to the Stargate project.
Leading tech companies recently unveiled plans to establish a new entity named Stargate, aimed at bolstering AI infrastructure within the United States. Stargate intends to invest $500 billion in the development of AI infrastructure for OpenAI over the next four years.
OpenAI announced that the initial equity stakeholders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI will serve as the primary partners for Stargate, with SoftBank assuming financial leadership and OpenAI managing operations. SoftBank's Masayoshi Son will take on the role of chairman.
Key initial technology partners include Arm, Microsoft, NVIDIA, Oracle, and OpenAI. Infrastructure development has commenced in Texas, and the companies are considering additional sites nationwide for future campuses, as they finalize definitive agreements, according to OpenAI.
As part of the Stargate initiative, Oracle, NVIDIA, and OpenAI will work closely together to develop and manage this computing infrastructure.
