SoftBank Group Corp. is in discussions to invest between $15 billion and $25 billion in OpenAI, a move that could make the Japanese conglomerate the artificial intelligence company’s largest financial backer. This potential investment comes as SoftBank intensifies its push into AI, complementing its existing $15 billion commitment to Project Stargate, a Texas-based joint venture with OpenAI, Oracle, and Abu Dhabi-backed MGX aimed at building AI data centers and infrastructure.
According to sources familiar with the matter, the discussions remain in early stages and may not materialise into a final deal. Both SoftBank and OpenAI have declined to comment on the ongoing talks. If completed, the investment would significantly expand SoftBank’s footprint in the AI sector, following years of mixed results from its Vision Fund’s bets on technology startups.
SoftBank CEO Masayoshi Son has long been an advocate for AI innovation and has maintained a close relationship with OpenAI CEO Sam Altman. Their partnership was reinforced earlier this month when Son joined Altman at a White House event where US President Donald Trump announced the launch of Project Stargate. The initiative plans to deploy an initial $100 billion to develop AI infrastructure, with projections to reach $500 billion over four years.
OpenAI’s search for additional investment aligns with its need to expand data center capacity and bolster its AI capabilities. The company faces growing competition, particularly from Chinese startup DeepSeek, which has demonstrated the ability to rival OpenAI’s technology at a fraction of the cost. Microsoft, OpenAI’s largest investor and primary cloud provider, has not commented on the potential SoftBank investment.
SoftBank has been looking for a strategic entry point into the AI hardware market, particularly in semiconductor development, to support AI growth. Son and Altman have reportedly shared concerns about the global shortage of advanced chips required for AI applications. The Vision Fund recently invested $500 million in OpenAI and launched a $1.5 billion tender offer to acquire additional stock from OpenAI employees.
The news of SoftBank’s potential investment has sent ripples through global markets, boosting shares of semiconductor firms such as Japan’s Advantest Corp. However, SoftBank’s own shares saw only a marginal decline, reflecting investor uncertainty over the broader implications of its AI investments.
Scepticism remains regarding whether Project Stargate represents a significant leap in AI infrastructure investment or merely a repackaging of previously announced data centre initiatives. Tech industry figures, including Elon Musk, have raised doubts about the financing commitments underpinning the initiative. SoftBank, which had approximately $25 billion in cash and cash equivalents at the end of September, could leverage its substantial stake in chip designer Arm Holdings Plc to fund its AI ambitions.
As competition in the AI sector intensifies, SoftBank’s potential backing of OpenAI could further solidify its influence in the rapidly evolving industry, positioning it at the forefront of next-generation technology development.
