SoftBank to Invest $4B in OpenAI, Ousting Microsoft as Top Backer

Generated by AI AgentCoin World
Friday, Feb 7, 2025 9:52 am ET1min read
MSFT--

SoftBank is set to invest $4 billion in OpenAI, potentially replacing Microsoft as the largest investor. The deal, which values OpenAI at $260 billion, is expected to be completed over the next 12 to 24 months. SoftBank will pay the first installment in the spring, with the post-investment valuation reaching $300 billion. Upon completion, SoftBank will surpass Microsoft to become OpenAI's largest supporter.

This significant investment by SoftBank comes as OpenAI continues to make strides in the field of artificial intelligence. The company, founded in 2015, has been at the forefront of developing AI technologies, including the popular language model, ChatGPT. OpenAI's mission is to ensure that artificial intelligence benefits all of humanity, and this new investment will likely help the company further its research and development efforts.

The AI sector has seen a surge in investment and interest in recent months, with companies like DeepSeek and Virtuals launching new initiatives. DeepSeek, for instance, has unveiled the Burst AI Bubble, which aims to provide a comprehensive overview of the AI landscape. Meanwhile, Virtuals has launched a partner network, allowing users to connect their X accounts to the AIXBT terminal for additional interaction.

As the AI sector continues to grow, investors are increasingly looking for opportunities to capitalize on the potential of these technologies. SoftBank's investment in OpenAI is a testament to the confidence that investors have in the future of AI. With the completion of this deal, SoftBank will become a major player in the AI space, joining other prominent investors such as Microsoft.

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