SoftBank Eyes $25B Investment in OpenAI

SoftBank is in advanced talks to inject up to $25 billion directly into OpenAI, positioning the Japanese tech giant as the ChatGPT maker’s largest financial backer, according to Financial Times reporting on Wednesday.

If finalized, the deal would eclipse Microsoft’s $13 billion investment, marking SoftBank’s most ambitious move in artificial intelligence to date. The potential investment comes amid a pivotal moment for the AI industry, with OpenAI seeking to reduce its reliance on Microsoft’s cloud infrastructure.

Last week, SoftBank committed $15 billion to Stargate, a $500 billion data center project involving OpenAI, Oracle, and investment firm MGX. The project, announced by U.S. President Donald Trump, is expected to create over 100,000 jobs in Texas and strengthen America’s AI infrastructure. SoftBank CEO Masayoshi Son has been appointed chairman of Stargate.

Reshaping AI Infrastructure

The SoftBank investment signals a strategic shift for OpenAI. As part of the Stargate agreement, Microsoft agreed to relinquish its exclusivity as OpenAI’s sole cloud provider, opening the door to partnerships with Oracle and other firms.

Discussions around SoftBank’s investment are ongoing, with sources suggesting that SoftBank’s total commitment to OpenAI could exceed $40 billion when factoring in additional capital from Stargate.

The project’s funding will be structured with approximately 20% coming from equity and 80% leveraged through debt, mirroring traditional infrastructure financing at an unprecedented scale in the tech sector.

For SoftBank’s Masayoshi Son, this investment aligns with his long-term vision of “super-intelligence”—technology surpassing human cognitive abilities. Son has reportedly spent years courting OpenAI CEO Sam Altman, seeing OpenAI as a critical partner in the next wave of AI infrastructure dominance.

OpenAI’s For-Profit Transition

As OpenAI scales, its board is actively negotiating to transition the company into a for-profit public benefit entity.

The AI firm has enlisted Goldman Sachs CEO David Solomon and advisory firm M. Klein & Co to oversee the transition, with legal counsel from Wachtell Lipton’s Andy Nussbaum.

Last year, OpenAI reached a $157 billion valuation after raising approximately $20 billion across multiple funding rounds, including SoftBank’s earlier $2 billion stake.

AI’s Competitive Landscape

SoftBank’s massive investment comes amid a changing AI landscape, where efficiency is beginning to rival raw compute power.

Chinese AI firm DeepSeek recently disrupted industry assumptions by demonstrating that sophisticated AI models can be built on relatively modest budgets.

Jack Tan, co-founder of crypto exchange WOO X, told Decrypt:

“Beyond model efficiency, proprietary data and real-world applications will ultimately define sustained leadership—favoring those with the resources to scale AI across industries.”

Tan suggested that the rise of smaller, decentralized AI players challenges the notion that hyperscale compute infrastructure like Stargate is essential, potentially reducing reliance on massive centralized AI hubs.

SoftBank’s Risky Bet?

The debt-heavy structure of SoftBank’s proposed OpenAI investment—leveraged at 80% debt financing—bears similarities to its infamous $16 billion investment in WeWork, which collapsed spectacularly.

If completed, this deal would be SoftBank’s largest single AI investment, dwarfing all previous bets in the sector.

The question now is whether OpenAI, with SoftBank’s backing, can maintain its dominance—or if the AI industry’s landscape will shift toward more efficient and decentralized computing models in response to emerging competition like DeepSeek.

The Future of AI Infrastructure

With OpenAI securing new financial and strategic partnerships, the AI arms race is heating up. SoftBank’s move could accelerate OpenAI’s expansion while reshaping the global AI infrastructure landscape.

Whether this high-stakes investment will pay off or follow the fate of past SoftBank mega-bets remains to be seen. One thing is certain: AI’s next phase will be defined by who controls the infrastructure—and who adapts the fastest.