SoftBank Group is leading a funding round of up to $40 billion for artificial intelligence developer OpenAI, valuing the company at $300 billion. The deal, which includes convertible notes, comes as Chinese startup DeepSeek has launched an inexpensive AI model that has challenged expectations on AI development costs.
OpenAI, maker of ChatGPT, is valued at $260 billion in the funding round, up from $150 billion a few months ago. SoftBank will invest directly into Microsoft-backed OpenAI and may use some funds to support Stargate, a joint venture planning to invest up to $500 billion to stay ahead of rivals.
The investment bolsters SoftBank’s own AI efforts, which are already valued at $30 billion in cash reserves. The funding comes as CEOs of Microsoft and Meta Platforms defend their massive AI spending, citing the need for staying competitive in the field.
DeepSeek has raised concerns by demonstrating that training its model requires less computing power than expected. This has sparked debate about whether high-cost AI labs can maintain revenue while facing lower-priced rivals.
Source: https://finance.yahoo.com/news/openai-talks-investment-round-valuing-194313086.html