SoftBank is close to finalizing a $40 billion primary investment in OpenAI, valuing the company at $260 billion pre-money. The funding will be paid out over 12-24 months, with the first payment coming as soon as spring. SoftBank’s stake would increase its valuation of OpenAI from $157 billion to $300 billion post-money.
The new funding round makes SoftBank the top backer of OpenAI, surpassing Microsoft. Part of the funding will be used for OpenAI’s commitment to Stargate, a joint venture with SoftBank and Oracle aimed at investing in US AI infrastructure.
OpenAI has been aggressively competing in the generative AI market since launching its ChatGPT chatbot in 2022. The company has also released an AI platform for the US government, known as ChatGPT Gov, which aims to provide more security features than its enterprise version.
The funding comes after SoftBank committed to spending $3 billion per year on OpenAI’s tech and announced a joint venture with OpenAI to market its enterprise tech in Japan. This move is seen as a response to Chinese rival DeepSeek’s recent success with its app, which soared to the top of Apple’s App Store rankings.
OpenAI CEO Sam Altman has been open about his admiration for President Donald Trump and has taken steps to appease him, including contributing $1 million to Trump’s inauguration. The new funding round is expected to further solidify OpenAI’s position in the AI market, which is predicted to reach $1 trillion in revenue within a decade.
Source: https://www.cnbc.com/2025/02/07/softbank-set-to-invest-40-billion-in-openai-at-260-billion-valuation-sources-say.html