SoftBank Reportedly in Talks to Double Down on OpenAI with Massive New Investment

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According to a Reuters report, Japanese technology investment giant SoftBank is in negotiations to inject up to an additional $30 billion into OpenAI, the creator of ChatGPT. This potential move would significantly expand its stake in the artificial intelligence leader, coming just weeks after a previous $41 billion commitment made in December. In Tokyo trading, SoftBank shares responded positively to the news, advancing by 3.5 percent.

Should the talks conclude successfully, this new capital infusion would form part of a broader funding round that could raise as much as $100 billion for OpenAI. At an estimated valuation of approximately $830 billion, OpenAI would cement its position among the world's most valuable private companies.

SoftBank already holds an 11 percent stake in OpenAI, acquired for $41 billion last December. If the maximum $30 billion investment is finalized, the conglomerate's total commitment to a single partner would surpass $70 billion. To put that figure into perspective, it represents roughly half of SoftBank's own current market capitalization.

CEO Masayoshi Son's All-In AI Strategy

This aggressive investment strategy bears the clear imprint of SoftBank's founder and CEO, Masayoshi Son. Reuters previously indicated that for the initial OpenAI investment, Son had to scramble for funds, effectively bringing other Vision Fund deals to a halt. His focus on artificial intelligence appears to be an absolute priority.

The two companies are also collaborating on the "Stargate" project, a $500 billion initiative aimed at constructing advanced AI data centers. The U.S. government views this undertaking as a critical component in the technological competition with China.

However, the path has not been without setbacks. Bloomberg reported yesterday that SoftBank has terminated discussions to acquire data center operator Switch Inc. for about $50 billion, a development that tempers some of Son's infrastructure ambitions.

A Flurry of Strategic Activity

Beyond the OpenAI negotiations, SoftBank has been active on several other fronts recently. In December, the group completed the $4 billion acquisition of DigitalBridge to scale its AI infrastructure capabilities. This was followed by the purchase of Ampere Computing Holdings in November. Furthermore, in early January, OpenAI and SoftBank jointly invested $1 billion in SB Energy to support data center expansion.

Investors will be keenly watching for the financial impact of this aggressive AI strategy when SoftBank releases its quarterly earnings for Q3 of fiscal year 2025 on February 12.

@ boerse-global.de | JP3436100006 SOFTBANK