SoftBank is in discussions to invest up to $25 billion in OpenAI, the owner of ChatGPT, as the Japanese conglomerate seeks to strengthen its foothold in the artificial intelligence (AI) sector. According to sources familiar with the matter, this potential investment would solidify SoftBank’s role as one of OpenAI’s primary backers, marking a significant step in the firm’s continued expansion into the fast-growing AI industry.
The proposed investment could range between $15 billion and $25 billion, with some of the funds earmarked for OpenAI’s obligations within the Stargate project, a joint venture involving Oracle, OpenAI, and SoftBank. Stargate is designed to support the United States in maintaining its competitive edge over China and other global rivals in the AI race, with plans to invest up to $500 billion in the sector.
SoftBank’s involvement in Stargate is already substantial, having committed $15 billion to the project. However, the new talks are set to potentially increase SoftBank’s total contribution to OpenAI and Stargate combined, pushing the conglomerate further into the heart of the AI arms race. The discussions are still in their early stages, according to sources, with the Financial Times first reporting the news on Thursday.
In previous reports, tech news website The Information revealed that SoftBank had been preparing to invest as much as $40 billion into both Stargate and OpenAI. The company had reportedly also begun negotiations to secure up to $18.5 billion in financing backed by its publicly listed assets to fund these investments. Such a move would significantly expand SoftBank’s footprint in the AI sector and reinforce its position as a top investor in one of the world’s most valuable and influential AI companies.
The Stargate venture, which was officially announced at the White House last week, has become a central element of the discussions between SoftBank, OpenAI, and Oracle. The announcement was made by key figures, including US President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison. The venture aims to ensure that the US remains at the forefront of the global AI competition, with a particular focus on advancing the country’s technological capabilities to counter Chinese dominance in AI development.
However, recent developments have added a new layer of complexity to the equation. A little-known Chinese startup, DeepSeek, has disrupted the AI market by introducing a free AI assistant, claiming it was developed more cost-effectively by using cheaper chips and less data than its US competitors. This has caused a shift in investor sentiment, leading to a sharp selloff in the market. SoftBank’s share price surged on the news of the Stargate project but has since fallen more than 12% as concerns over DeepSeek’s competitive edge began to take hold.
Despite this market turbulence, SoftBank’s plans to make a substantial investment in OpenAI remain intact. CEO Masayoshi Son has reportedly received approval from senior executives and the board of OpenAI to move forward with the potential deal. This follows SoftBank’s previous investment of $1.5 billion in OpenAI last year, which helped cement its relationship with the AI company.
OpenAI has rapidly grown in value, with its most recent funding round placing the company’s valuation at $157 billion. This solidifies OpenAI’s status as one of the most valuable private companies in the world, and a highly sought-after partner for investors looking to capitalise on the AI revolution.
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At present, neither SoftBank nor OpenAI has responded to Reuters’ request for comment on the matter. Nonetheless, the discussions underscore SoftBank’s growing ambition to become a dominant player in the AI space, particularly through its deepening ties with OpenAI, which is at the cutting edge of AI technology.
If the investment deal goes through, SoftBank could further solidify its position as one of the most influential investors in the AI sector, alongside other major players like Microsoft. The outcome of these talks will likely shape the future landscape of AI development, particularly in terms of the competition between the US and China.
With the AI industry continuing to evolve at a rapid pace, SoftBank’s potential role as a major backer of OpenAI could prove pivotal in shaping the direction of the sector in the coming years. However, the increased competition from companies like DeepSeek and the broader market volatility may present challenges for SoftBank as it seeks to secure its place at the top of the AI investment hierarchy.
