OpenAI and SoftBank: A Potential $25 Billion Partnership in the Making

This month, news has spread on a potential multi-billion-dollar deal with SoftBank that would significantly alter OpenAI’s financial position. The Financial Times reports that Japanese investment firm is negotiating an investment of $15 billion to $25 billion in OpenAI, which would establish it as the company’s largest financial supporter.

It’s a staggering figure, even by SoftBank’s standards. CEO Masayoshi Son has a long history of high-stakes bets, from the Vision Fund’s costly ride-sharing investments to his early backing of Alibaba. Now, OpenAI—already valued at $157 billion following its most recent funding round—appears to be next in line for SoftBank’s deep pockets. If the deal closes, it would position SoftBank alongside Microsoft as one of OpenAI’s most influential backers.

The Stargate Play

SoftBank’s reported investment aligns with its growing involvement in AI infrastructure. Just last week, OpenAI and SoftBank joined forces with Oracle to launch Stargate, a $100 billion initiative that Donald Trump called “the largest AI infrastructure project in history.”

The project aims to build next-generation AI datacenters, but the scale of investment has drawn skepticism—including from Elon Musk, who questioned whether its backers actually have the money. "SoftBank has well under $10B secured. I have that on good authority,” posted Musk on X.

In response, OpenAI CEO Sam Altman dismissed Musk’s claims, stating on X: “wrong, as you surely know. want to come visit the first site already under way? this is great for the country. i realize what is great for the country isn't always what's optimal for your companies, but in your new role i hope you'll mostly put [the USA] first.”

While details remain scarce, SoftBank’s equity investment would reportedly cover its commitment to Stargate, raising questions about whether this is purely a financial play or a strategic move to secure deeper influence over OpenAI’s future.

Racing Against DeepSeek

The timing of this potential investment is significant. OpenAI has faced growing competition from Chinese AI firms, particularly DeepSeek, whose latest chatbot recently topped Apple’s free app store and triggered a market-wide drop in AI-linked stocks.

Initially, Altman welcomed the competition, stating that it was “legitimately invigorating to have a new competitor.” But tensions escalated when OpenAI later claimed that Chinese startups were using OpenAI’s technology to develop their own models. That accusation underscores the increasingly complex global AI race, where access to proprietary technology and infrastructure is just as valuable as model performance.

SoftBank’s AI Strategy—Big Vision or High-Risk Gamble?

SoftBank has long positioned itself as a leader in AI investment, but this potential deal with OpenAI would mark its most ambitious AI move yet. If finalized, the investment would give SoftBank an unprecedented stake in one of the most influential AI companies on the planet, with implications for both AI governance and global competition.

The question remains: Is this another bold SoftBank vision, or a high-risk gamble? Given OpenAI’s pace of innovation—and the growing pressure from China—$25 billion might just be the price of staying relevant in the AI arms race.

References

• Dan Milmo (2025, 30-Jan). SoftBank ‘in talks’ to invest up to $25bn in OpenAI. The Guardian. Available online. Accessed 9 February 2025.
• OpenAI (2025, 21-Jan). Announcing The Stargate Project. Available online. Accessed 9 February 2025.
• Matt O’Brien (2025, 7-Feb). OpenAI looks across US for sites to build its Trump-backed Stargate AI data centers. Available online. Accessed 9 February 2025.
• Brian Schwartz, Deepa Seetharaman and Tom Dotan (2025, 22-Jan). Musk Pours Cold Water on Trump-Backed Stargate AI Project. The Wall Street Journal. Available online. Accessed 9 February 2025.