SoftBank eyes up to $25B investment in OpenAI: Report
Last week, to meet the growing demand for AI infrastructure, US President Donald Trump unveiled a private sector investment of up to $500 billion with the launch of Stargate. This joint venture between OpenAI and SoftBank aims to build data centers and generate more than 100,000 jobs.
Japanese tech conglomerate is planning to invest up to $25 billion in , making it the largest financial backer of the ChatGPT creator.
According to a Financial Times report, the deal is tied to Stargate, a new initiative by US President Donald Trump, which is receiving private sector investments of up to $500 billion.
A joint venture between OpenAI and SoftBank, Stargate aims to develop data centers and generate over 100,000 jobs across the US.
The initiative is backed by SoftBank, OpenAI, Oracle, and Abu Dhabi-based MGX. While SoftBank will handle financial responsibilities, OpenAI will take charge of operations, positioning both as the key partners driving the ambitious project.
Masayoshi Son, Founder of SoftBank, is taking a bold step by heavuly investing in OpenAI in a bid to secure a larger stake to achieve “superintelligence.”
According to the report, SoftBank is weighing a direct investment of $15–25 billion in the Sam Altman-led firm, alongside its existing commitment of over $15 billion to Stargate, according to multiple sources familiar with the matter.
SoftBank’s equity investment in OpenAI could help fund the company's $15 billion commitment to Stargate, according to sources with direct knowledge of the deal. In addition, OpenAI itself is expected to invest around $15 billion in the project.
The report further adds that the deal is yet to be finalised. For now, Microsoft, OpenAI’s first investor in 2019, remains its largest shareholder.
However, while several tech conglomerates are pouring billions to fuel their AI infrastructure, Chinese startup DeepSeek claims to have trained its base AI model with just $5.6 million—a fraction compared to projects like Stargate.
Founded in late 2023 by hedge fund manager and entrepreneur Liang Wenfeng, DeepSeek operates out of Hangzhou, China. Wenfeng, who also leads the AI-focused hedge fund High-Flyer, launched the firm to counter industry rivals with a leaner approach to AI development.
The Chinese AI has also managed to gain the attention of OpenAI boss Sam Altman, who called the model “impressive”.
“DeepSeek’s r1 is an impressive model, particularly around what they’re able to deliver for the price. We will obviously deliver much better models, and also it’s legit invigorating to have a new competitor! we will pull up some releases,” said Altman on X.
Edited by Megha Reddy