SoftBank is reportedly in discussions to invest as much as $25 billion in OpenAI, potentially making it the AI firm’s largest single backer.
The investment would be part of an AI strategy that could see the Japanese conglomerate pour over $40 billion into the sector, according to sources familiar with the matter.
The discussions come shortly after OpenAI and SoftBank committed $100 billion to Stargate, a U.S. data centre project designed to support OpenAI’s growing infrastructure needs.
The initiative, which could scale up to $500 billion over four years, is aimed at strengthening America’s place globally, in the AI sector. SoftBank has already pledged $15 billion to Stargate and is now considering a further investment of between $15 billion and $25 billion directly into OpenAI.
If the deal materialises, it would surpass Microsoft’s existing stake in OpenAI. Microsoft, which first invested in the ChatGPT maker in 2019, has been OpenAI’s primary cloud partner.
However, recent developments reveal OpenAI may be looking to diversify its funding sources, with Microsoft reportedly agreeing to relinquish its exclusive cloud provider status.
The timing of SoftBank’s move coincides with current issues in the AI industry following the emergence of DeepSeek, a Chinese AI firm that recently introduced a powerful model developed with relatively modest resources.
The launch triggered a market shake-up, causing Nvidia—one of the biggest players in AI hardware—to see a market value drop before recovering.
Adding to these, OpenAI has accused DeepSeek of using its proprietary models to train the newly released AI system through a technique called “distillation.”
This method allows developers to replicate high-performance AI with fewer resources, but OpenAI maintains that such usage violates its terms of service.
SoftBank’s founder, Masayoshi Son, is no stranger to high-stakes investments. His latest push into AI would mark his biggest commitment since the ill-fated $16 billion investment in WeWork.
However, this time, SoftBank appears to be making a more strategic bet, with Stargate’s funding expected to be structured through a combination of equity and debt financing. Around 20% of the project’s funding will reportedly come from equity, while the rest will be backed by assets and projected cash flows.
OpenAI, which was valued at $157 billion in its last funding round, is also exploring a shift to a for-profit model to facilitate further capital-raising.
Meanwhile, SoftBank’s stock has seen fluctuations in the midst of these AI developments, surging after the Stargate announcement but declining following DeepSeek’s market disruption.
