SoftBank's Bold AI Bet: A Multi-Billion Dollar Investment in OpenAI

SoftBank plans to invest up to $25 billion in OpenAI, aiming to become its largest financial backer. This investment aligns with SoftBank's strategy to expand in AI, alongside a $15 billion pledge to the Stargate venture. Despite competition from China's DeepSeek, SoftBank is moving forward with its strategic investments.


Devdiscourse News Desk | Updated: 30-01-2025 09:34 IST | Created: 30-01-2025 09:00 IST
SoftBank's Bold AI Bet: A Multi-Billion Dollar Investment in OpenAI
Representative Image Image Credit: Flickr

In a strategic move to expand its footprint in the artificial intelligence sector, SoftBank is in discussions to inject up to $25 billion into OpenAI, according to the Financial Times. This potential investment would make the Japanese conglomerate the largest financial supporter of the AI firm.

The proposed funding is part of a broader strategy by SoftBank to enhance its influence in cutting-edge technology. It includes a commitment of $15 billion to Stargate, a collaborative initiative with Oracle and OpenAI aimed at bolstering the United States' position in the global AI landscape. This initiative involves an ambitious plan to invest up to $500 billion.

SoftBank's strategy comes amid growing competition, notably from DeepSeek, a Chinese startup disrupting the market with a cost-effective AI assistant. Despite these market pressures, SoftBank remains focused, with its leadership vetting the plan for a significant stake in OpenAI. The company's shares have experienced recent fluctuations, partly due to developments in the global AI race.

(With inputs from agencies.)

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