SoftBank to Become OpenAI's Largest Investor with $40 Billion Commitment
The investment will value OpenAI at $260 billion pre-money and support U.S. AI infrastructure projects, overtaking Microsoft's role as the startup's top backer.
- SoftBank is finalizing a $40 billion investment in OpenAI, raising the AI company's valuation to $300 billion post-money over the next 12 to 24 months.
- The funding will partly support the Stargate project, a joint venture with Oracle and OpenAI to enhance U.S. AI infrastructure, announced by President Donald Trump.
- This deal will make SoftBank OpenAI's largest investor, surpassing Microsoft, which has invested over $13 billion in the company to date.
- OpenAI faces growing competition from Chinese startup DeepSeek, whose cost-effective AI models have disrupted the market and prompted OpenAI to accelerate its advancements.
- The global AI market is projected to exceed $1 trillion in revenue within a decade, with OpenAI and SoftBank aiming to solidify leadership through strategic investments and partnerships.