SoftBank Poised to Invest $40 Billion in OpenAI, Valuing AI Giant at $260-300 Billion

SoftBank to invest $40B in OpenAI

The AI investment landscape is shifting once again, with SoftBank reportedly finalizing a $40 billion stake in OpenAI - pushing its valuation to around $300 billion. If that sounds massive, it is. SoftBank's planned investment dwarfs the $13 billion Microsoft has poured into OpenAI - an alliance that has already attracted plenty of antitrust scrutiny. First revealed by CNBC, the yet-to-close SoftBank investment would begin paying out as soon as spring, and continue over the next one to two years. Part of the funding is expected to support OpenAI's Stargate project, which aims to build advanced AI infrastructure with an eventual $500 billion price tag. If it comes to fruition, it wouldn't even be SoftBank's first OpenAI-related announcement of February, despite us being only a week into the month. The pair announced a partnership on February 3 to develop and market an enterprise AI they call "Cristal intelligence" that SoftBank said would "securely integrate the systems and data" of businesses in a customized way for each deployment. Once set up, Cristal would use agentic AI to automate business tasks, and SoftBank wants to be sure it's first in line to test the new systems. "SoftBank Group Corp. will spend $3 billion US annually to deploy OpenAI's solutions across its group companies, making it the first company in the world to integrate Cristal intelligence at scale," the Japanese firm said Monday. As part of the deal, SoftBank and OpenAI have formed a joint venture called "SB OpenAI Japan" to market Cristal to major Japanese companies. Oh, and the partnership also ensures SoftBank and its group companies - including Arm - "will be granted priority access in Japan to the latest and most-advanced models developed by OpenAI." SoftBank CEO Masayoshi Son has been frothing-at-the-mouth bullish on AI, predicting last year that an artificial superintelligence 10,000 times smarter than a human brain would arrive within the next decade - if enough investment flows in. So, where does this leave Microsoft? Playing second fiddle in the courting of OpenAI, it seems. Redmond labeled the Altman-led outfit a competitor in its 2024 annual report, noting that OpenAI's products rival its own AI offerings -- even as many of those Microsoft-branded tools rely on OpenAI's models under the hood. The software giant has reportedly taken steps to change that, while also touting its evolving and close partnership. We've reached out to SoftBank and OpenAI to confirm the new investment, and Microsoft to see if its feelings have been hurt, but haven't heard back. ®

Softbank set to invest $40 billion in OpenAI at $260 billion valuation, sources say

SoftBank is close to finalizing a $40 billion primary investment in OpenAI at a $260 billion pre-money valuation, sources told CNBC's David Faber. SoftBank would pay out the funding, which would mean a $300 billion post-money valuation for OpenAI, over the next 12 to 24 months, with the first payment coming as soon as spring, CNBC's David Faber reported Friday. SoftBank would be able to syndicate as much as $10 billion of the amount. The new funding would mean SoftBank surpasses Microsoft as the artificial intelligence startup's top backer. OpenAI was last valued at $157 billion by private investors in October. The round was initially expected to award OpenAI a valuation of $340 billion, but a source familiar with the matter later told CNBC that the amount would be closer to $300 billion.

SoftBank poised to invest $40 billion in OpenAI, valuing AI giant at $260 billion; how will it fuel Trump's 'Stargate' initiative and the future of AI?

SoftBank is preparing to invest $40 billion in OpenAI, valuing the artificial intelligence company at $260 billion, according to sources. This significant investment is part of a broader collaboration between SoftBank's CEO, Masayoshi Son, and OpenAI's CEO, Sam Altman, focusing on advancing AI technologies.SoftBank is making a major move in artificial intelligence by planning to invest $40 billion in OpenAI, valuing the AI company at a massive $260 billion. This deal, if finalized, would mark one of the biggest AI investments ever, further strengthening OpenAI's position in the industry. According to a report by the Financial Times, SoftBank's CEO Masayoshi Son and OpenAI's CEO Sam Altman are working on this deal, which could reshape the AI landscape. SoftBank has long been looking to expand its AI presence. The company, led by Masayoshi Son, has previously invested billions in tech companies through its Vision Fund. Son has been vocal about his belief in AI and its future potential. By investing in OpenAI, SoftBank aims to be at the center of AI innovation, which is becoming increasingly important in sectors like healthcare, finance, and automation. The investment would also give SoftBank a strategic advantage in AI infrastructure and applications. With OpenAI developing powerful AI models like ChatGPT, SoftBank sees a long-term opportunity in funding the future of artificial intelligence. Also Read : Amazon announced a massive $104 billion AI & Cloud bet - Will its stock soar or sink investors? Alongside this investment, OpenAI and SoftBank are reportedly working on an ambitious project called "Stargate." This initiative, valued at $500 billion, aims to develop large-scale AI data centers to support OpenAI's advanced AI models. According to reports, OpenAI is currently scouting locations across 16 U.S. states to set up these data centers. Building such an infrastructure is crucial for OpenAI, as AI models require vast computing power. The partnership with SoftBank would provide the funding and resources needed to scale OpenAI's technology and bring new innovations to the market. The AI industry is growing rapidly, with companies like Microsoft, Google, and Nvidia investing billions into AI research. If SoftBank successfully invests $40 billion in OpenAI, it will be one of the largest AI deals in history, positioning OpenAI as a dominant player in the industry. This deal also signals a broader trend where major tech investors are putting their money into AI startups and infrastructure. With AI adoption increasing in businesses and everyday applications, investments like these will likely shape the future of AI development. Also Read : Bill Gates blasts Elon Musk over USAID shutdown plans, calls his political moves 'Dangerous' While the deal is not yet finalized, the discussions between SoftBank and OpenAI indicate a strong interest in collaboration. If the investment goes through, it could accelerate OpenAI's expansion plans and provide SoftBank with a key role in AI's future. How will SoftBank's $40 billion investment impact OpenAI? SoftBank's $40 billion investment will help OpenAI develop advanced AI technologies and expand into more industries. Will SoftBank's investment in OpenAI fuel Trump's Stargate project? If Trump's Stargate project involves AI, SoftBank's investment in OpenAI could provide crucial technology support.