Japan’s SoftBank is currently in discussions to invest between $15bn and $25bn in OpenAI, the creator of ChatGPT, reported Financial Times (FT), citing sources.
This move could position SoftBank as the largest financial supporter of the AI company, surpassing even Microsoft’s investment.
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Recently, OpenAI and SoftBank announced plans for a $500bn US AI infrastructure project, named Stargate.
The other initial equity funders of Stargate include US IT major Oracle, and MGX, which is the AI-focused investment vehicle of Abu Dhabi.
The latest investment plan by SoftBank in OpenAI would be in addition to its already pledged support for Stargate.
SoftBank’s total expenditure on its partnership with OpenAI could also surpass $40bn, reported the financial publication, citing multiple people with direct knowledge of the negotiations.
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By GlobalDataOpenAI’s contribution to the Stargate project is expected to be approximately $15bn.
According to several sources with direct knowledge of the deal, SoftBank’s equity investment in OpenAI could help cover latter’s commitment to the Stargate.
One person familiar with the matter was quoted by the publication as saying: “The talks are ongoing and the amount that SoftBank could invest in primary equity into OpenAI is a moving target.”
Microsoft, which first invested in OpenAI in 2019, currently holds the position of the startup’s largest shareholder.
OpenAI has amassed roughly $20bn through several funding rounds, leading to a valuation of $157bn in 2024. In the same year, SoftBank acquired a $2bn stake in OpenAI.
OpenAI CEO Sam Altman has been seeking to reduce the company’s reliance on Microsoft for computing resources.
This has led to initiatives such as developing proprietary chips and exploring partnerships with other cloud service providers such as Oracle.
As part of the Stargate deal, Microsoft has agreed to step down as OpenAI’s exclusive cloud service provider.
Insiders close to the negotiations suggest that approximately one-fifth of the total funding for Stargate is expected to come from equity investments.
Recently, Bloomberg reported that SoftBank was in discussions to spearhead a $500m funding round in AI robotics software startup Skild AI.
The funding round could elevate Skild AI’s valuation to $4bn, an increase from its $1.5bn valuation in 2024.
