SoftBank in talks to invest up to $25 billion in OpenAI

SoftBank is negotiating a potential investment of up to $25 billion in OpenAI, positioning itself as the startup’s largest backer, CNBC has confirmed.

The deal is still under discussion, according to a source familiar with the matter who requested anonymity due to the confidentiality of the talks. The Financial Times first reported SoftBank’s potential investment.

In November, OpenAI allowed employees to sell approximately $1.5 billion in shares to SoftBank. At the time, sources told CNBC that SoftBank founder Masayoshi Son persistently pushed for a larger stake after investing $500 million in OpenAI’s last funding round.

SoftBank, OpenAI, and Oracle have also launched a joint venture called Stargate. Announced at the White House by President Donald Trump last week, the initiative aims to channel billions into U.S. artificial intelligence infrastructure.

OpenAI, historically backed by Microsoft, is shifting toward a for-profit model. Founded in 2015 as a nonprofit, it is now creating a public benefit corporation to manage commercial operations. This move relaxes nonprofit restrictions, allowing OpenAI to operate more like a high-growth startup. As competition in generative AI intensifies, the company needs more capital and computing power to stay ahead. Analysts predict the market could reach $1 trillion within a decade.

“The hundreds of billions of dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission,” OpenAI’s board wrote in a blog post last month.

OpenAI’s Soaring Valuation and Competitive Landscape

Private investors have valued OpenAI at $157 billion. Since launching ChatGPT in late 2022, the company has driven the generative AI boom. In October, OpenAI closed a $6.6 billion funding round, preparing to compete aggressively with Elon Musk’s xAI, as well as tech giants like Microsoft, Google, Amazon, and Anthropic.

Meanwhile, a Chinese rival is making waves. DeepSeek, an AI startup from China, saw its app skyrocket to the top of Apple’s App Store this week. Reports suggest its advanced model was trained at a fraction of the cost of U.S. competitors, shaking up the AI industry.

OpenAI CEO Sam Altman acknowledged DeepSeek’s progress, calling its R1 model “impressive.” He posted on X, “We will obviously deliver much better models, and also, it’s legit invigorating to have a new competitor!”

Key Points

SoftBank’s Potential $25 Billion Investment – SoftBank is in talks to invest up to $25 billion in OpenAI, positioning itself as the company’s largest backer. The deal is still under negotiation.
OpenAI’s Growth and Competition – OpenAI, valued at $157 billion, recently secured $6.6 billion in funding. It is shifting toward a for-profit model to compete with xAI, Microsoft, Google, Amazon, and Anthropic.
Rising Competition from DeepSeek – Chinese AI startup DeepSeek is gaining traction in the U.S., with its app topping Apple’s App Store. OpenAI CEO Sam Altman acknowledged its progress, calling the competition invigorating.