SoftBank Said to Be in Talks to Invest Up to $25 Billion Into OpenAI

OpenAI was valued at $157 billion (roughly Rs. 13,59,250 crore) in its last funding round.

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By Reuters | Updated: 30 January 2025 12:40 IST
Highlights
  • SoftBank could invest up to $25 billion in OpenAI
  • OpenAI may use some of this fund to Stargate
  • Stargate is an AI-focussed joint venture by Oracle, OpenAI and SoftBank

Talks on SoftBank's investment in OpenAI are said to be at an early stage

Photo Credit: Reuters

SoftBank is in talks to invest up to $25 billion (roughly Rs. 2,16,450 crore) in ChatGPT owner OpenAI, according to a person familiar with the matter, as the Japanese conglomerate continues to expand into the sector.

SoftBank could invest $15 billion (roughly Rs. 1,29,880 crore) to $25 billion (roughly Rs. 2,16,450 crore) directly into Microsoft-backed OpenAI, some of which may be used to pay for OpenAI's commitment to Stargate, the person said.

Stargate is a joint venture by Oracle, OpenAI and SoftBank, that plans to invest up to $500 billion (roughly Rs. 43,28.620 crore) to help the United States stay ahead of China and other rivals in the global AI race.

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SoftBank's investment would be on top of the $15 billion (roughly Rs. 1,29,878 crore) it has already committed to Stargate, the person said, adding the talks are at an early stage.

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The latest OpenAI investment talks were reported by the Financial Times earlier on Thursday.

Tech news website The Information reported previously that SoftBank was planning to invest a total $40 billion (roughly Rs. 3,46,320 crore) into Stargate and OpenAI and had begun talks to borrow up to $18.5 billion (roughly Rs. 1,60,170 crore) in financing, backed by its publicly-listed assets.

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The Stargate venture was announced by US President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison at the White House last week.

However, since then, a little-known startup from China, DeepSeek, has upended markets with a free artificial intelligence assistant it said was developed cheaply using lower-cost chips and less data than US rivals.

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SoftBank's share price surged on news of the Stargate project but has fallen more than 12 percent since the Deepseek-induced selloff began.

Its shares were down around one percent in morning trading on Thursday.

SoftBank CEO Son's plan to take a large stake in OpenAI and meet its Stargate commitments has been vetted by senior executives and the board at OpenAI, the Financial Times reported. Last year, SoftBank took a $1.5 billion (roughly Rs. 12,990 crore) stake in OpenAI.

OpenAI was valued at $157 billion (roughly Rs. 13,59,250 crore) in its last funding round, cementing its status as one of the most valuable private companies in the world.

OpenAI and SoftBank did not respond to Reuters' requests for comment.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

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Further reading: softbank, openai, sam altman, stargate
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