SoftBank Eyes Another $30 Billion for OpenAI in High-Stakes AI Bet

SoftBank Group is in early talks to invest an additional $30 billion into OpenAI, according to people familiar with the matter. The potential deal would significantly deepen the Japanese conglomerate's already substantial stake in the artificial intelligence pioneer, as OpenAI seeks to raise up to $100 billion in new capital. A deal could value OpenAI at approximately $830 billion.

This move follows SoftBank's completion of a $41 billion investment in OpenAI last December, which gave it an 11% stake. To help finance that earlier commitment, SoftBank sold its $5.8 billion stake in chipmaker Nvidia, a clear signal of Chief Executive Masayoshi Son's conviction in OpenAI's position as the leader in generative AI.

OpenAI and SoftBank both declined to comment on the reports. Microsoft remains the largest single shareholder with a stake of about 28%.

The talks underscore the astronomical costs of competing at AI's cutting edge. OpenAI's funding needs are driven by immense expenses for training new models and building computing infrastructure, including its involvement in the massive 'Stargate' data center project with SoftBank and Oracle.

Analyst Tomoichiro Kubota of Matsui Securities noted the news buoyed SoftBank's Tokyo shares, which rose over 8% before settling 3.4% higher. He called it a positive signal for market sentiment but warned of a 'more severe' competitive environment as rivals like Anthropic and Google's Gemini advance.

For Son, the potential investment reinforces a strategic pivot. Last November, he announced a $100 billion U.S. investment pledge and launched a joint venture with OpenAI in Japan, stating the pair were 'driving the AI revolution to the next stage.' If finalized, the new $30 billion would cement SoftBank's role as a central financier in the global race for AI supremacy, even as questions persist about the sustainability of such vast funding rounds.

Source: Webpronews