SoftBank to Invest $40 Billion in OpenAI at $260 Billion Valuation

John Riley

5 months ago

SoftBank is set to make a historic $40 billion investment in OpenAI, valuing the AI leader at $260 billion before the funding, according to sources.

📢 Key Takeaways:
✔ $40B investment over 12-24 months
✔ $300B post-money valuation
✔ Surpassing Microsoft as OpenAI’s top backer
✔ Funding AI infrastructure through Stargate

🚀 SoftBank’s Bold AI Bet

💰 Record-Breaking Investment

The deal would make SoftBank OpenAI’s largest investor, overtaking Microsoft. The first payment could come as early as spring 2025. SoftBank may syndicate up to $10 billion of the investment.

📈 OpenAI’s Soaring Valuation

✔ Last valuation: $157B (Oct 2024)
✔ New pre-money valuation: $260B
✔ Post-money valuation: $300B

Though an initial estimate valued OpenAI at $340 billion, recent reports suggest a $300 billion cap.

🔗 SoftBank, OpenAI & Stargate Collaboration

A portion of SoftBank’s funding will go toward Stargate, a joint AI infrastructure venture with OpenAI & Oracle, announced under Trump’s administration.

SoftBank has already committed $3 billion annually to OpenAI’s tech for its own subsidiaries, including Arm.

SB OpenAI Japan was also announced to promote OpenAI’s enterprise AI solutions in Japan.

🌍 AI Market & Competitive Landscape

OpenAI launched ChatGPT in 2022, igniting the generative AI boom. The industry is forecasted to surpass $1 trillion in revenue within a decade.

🏆 OpenAI vs. Global AI Competitors

🔹 Microsoft, Google, Amazon, Meta, Anthropic
🔹 Elon Musk’s xAI
🔹 Chinese rival DeepSeek

DeepSeek’s R1 model recently made headlines for its cost-efficient training, shaking up U.S. AI markets. OpenAI’s Sam Altman acknowledged the competition, vowing to deliver even more powerful AI models.

🔮 Future of OpenAI & SoftBank’s AI Strategy

✔ Expansion into enterprise AI (via SB OpenAI Japan)
✔ Strengthening AI infrastructure (via Stargate)
✔ New AI models & government-focused solutions (ChatGPT Gov)

With SoftBank’s backing, OpenAI is poised to lead the next era of AI innovation, securing its dominance in the $1T AI market.

📢 Stay tuned for more AI & tech updates!