SoftBank Eyes Historic $25 Billion Investment In OpenAI, Set To Dethrone Microsoft As Biggest Investor In ChatGPT-Parent

SoftBank Group (OTC:SFTBF) (OTC:SFTBY) is reportedly negotiating a potential investment of $15 billion to $25 billion in OpenAI. This move could make SoftBank the largest investor in the ChatGPT creator, surpassing Microsoft Corporation (NASDAQ:MSFT), which has invested nearly $14 billion.

What Happened: The investment would support OpenAI’s commitment to the Stargate AI infrastructure project, a joint venture with companies like SoftBank, Oracle Corp. (NYSE:ORCL), and the UAE’s MGX fund, reported the Wall Street Journal, citing a person familiar with the matter.

Stargate plans to invest up to $500 billion in AI data centers over the next four years. SoftBank’s funding for OpenAI would be separate from its planned $15 billion investment in the Stargate initiative.

See Also: Microsoft CEO Satya Nadella Accepts DeepSeek AI Has Some ‘Real Innovations’ — But Won’t Say If They Mark A Turning Point For AI Cost Reduction

Despite the potential investment, SoftBank would hold a smaller stake in OpenAI’s for-profit division compared to Microsoft, due to the latter's earlier investments, the report noted

Why It Matters: Last year, OpenAI’s valuation surged to $157 billion following a $6.6 billion funding round. At that time, the Tokyo-based conglomerate SoftBank invested $500 million in OpenAI.

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Elon Musk's xAI has also quickly expanded, reaching an estimated valuation of $50 billion in 2024.

Perplexity AI, supported by Amazon founder Jeff Bezos in December raised $500 million in a funding round, boosting its valuation to $9 billion.

Anthropic, backed by Google, is also reportedly in late-stage discussions to secure $2 billion in funding, which would push its valuation to $60 billion.

Photo by NP27 on Shutterstock.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.