SoftBank in Talks to Invest Up to $25 Billion in OpenAI -- WSJ

In a significant development in the tech and AI landscape, SoftBank is reportedly in talks to invest up to $25 billion in OpenAI, the company behind the popular AI chatbot ChatGPT and other groundbreaking AI models. The potential investment, which could make SoftBank OpenAI's largest single backer, comes as both companies announced a joint investment of $100 billion in Stargate, a U.S. data center project for OpenAI (Financial Times, 2025).

The talks between SoftBank and OpenAI come at a time when Chinese firm DeepSeek's release of its R1 reasoning model has rattled public markets, raising questions about the necessity of expensive AI hardware. Nvidia, a leading chipmaker, lost billions in market value as investors worried about the potential impact on big investments in AI hardware (Reuters, 2025).

OpenAI, which reached a valuation of $157 billion last year, is also negotiating to become a for-profit company to facilitate additional fundraising. The potential investment from SoftBank would reduce OpenAI's dependence on Microsoft, which has been its exclusive cloud provider (Financial Times, 2025).



SoftBank's investment in OpenAI aligns with its broader strategy of investing in AI and technology innovation. In 2021, SoftBank announced plans to invest over $100 billion in the U.S. over four years, with a significant portion allocated to AI initiatives. The potential investment in OpenAI is a key part of this strategy, demonstrating SoftBank's commitment to driving AI advancements and generating job growth (SoftBank Group, 2021).

For OpenAI, the potential investment from SoftBank would provide a significant boost in funding, enabling the company to drive innovation, expand its product offerings, and maintain its competitive edge in the AI landscape. With the additional resources, OpenAI could invest more in research and development, talent acquisition, and infrastructure to support its growing user base and product portfolio.

However, the volatile nature of the AI sector presents potential risks for SoftBank's investment. Technological advancements, regulatory challenges, market fluctuations, talent acquisition and retention, and reputation risks are all factors that SoftBank must consider and mitigate to ensure the success of its investment in OpenAI.

In conclusion, SoftBank's potential investment in OpenAI represents a significant development in the AI sector, with both companies poised to benefit from the strategic partnership. As the AI landscape continues to evolve, the success of this investment will depend on SoftBank's ability to navigate the risks and challenges associated with the volatile AI sector.