SoftBank in Talks to Invest $25 Billion in OpenAI, Valuing AI Firm at $300 Billion
In a groundbreaking development for the artificial intelligence sector, SoftBank is reportedly in discussions to invest up to $25 billion in OpenAI, potentially valuing the AI company at a staggering $300 billion. This news comes on the heels of OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son’s joint announcement of the Stargate project at the White House.
If the investment materializes, it would catapult OpenAI to the position of joint-second most valuable tech company alongside ByteDance, trailing only behind SpaceX. The substantial funding could enable OpenAI to invest $15 billion into the ambitious Stargate AI infrastructure project.
SoftBank’s potential investment aims to lead a new funding round in OpenAI, which could nearly double the company’s current valuation of $157 billion. However, sources close to the matter emphasize that talks are ongoing, and details regarding the investment size and valuation may still be subject to change.
This move would place OpenAI in an elite group of tech giants with centibillion valuations. SpaceX currently holds the top spot with a valuation of approximately $350 billion, while ByteDance, TikTok’s parent company, is valued at $300 billion. Other notable companies in this league include Stripe and Shein.
OpenAI has previously raised nearly $20 billion from investors such as Thrive Capital, Khosla Ventures, and Nvidia. If successful, SoftBank’s investment would surpass Microsoft’s $13 billion stake in OpenAI, marking a significant shift in the AI investment landscape.
The Stargate project, announced by Altman and Son, is a joint venture between SoftBank and OpenAI. This ambitious initiative plans to invest up to $500 billion in AI infrastructure in the United States over the next four years. Masayoshi Son will serve as chairman, with initial equity funders including Oracle and the UAE’s MGX. The project is set to commence with an immediate deployment of $100 billion.
However, questions remain about the source of capital for the Stargate project, given OpenAI’s current financial losses. SoftBank’s potential investment could provide the necessary funds for OpenAI to contribute its share to the project.
As of now, both SoftBank and OpenAI have refrained from commenting on the investment discussions. This development represents a significant milestone in the AI industry and could reshape the competitive landscape of tech giants in the coming years.
