Economy

OpenAI in Talks for $25 Billion SoftBank Investment to Expand Data Centers

SoftBank Group Corp. is in discussions to invest as much as $25 billion in OpenAI, a move that could make it the AI startup’s largest backer.

The investment would be in addition to the $15 billion SoftBank has already committed to Project Stargate.

A person familiar with the matter disclosed that SoftBank is considering an investment between $15 billion and $25 billion, though talks are ongoing and may not result in a final agreement.

SoftBank CEO Masayoshi Son has long expressed interest in artificial intelligence expansion, having maintained ties with OpenAI CEO Sam Altman since 2019. Son stood alongside Altman earlier this month when U.S. President Donald Trump announced the Stargate venture, a $100 billion AI infrastructure project backed by OpenAI, SoftBank, Oracle Corp., and Abu Dhabi-based MGX. The consortium plans to invest as much as $500 billion over four years.

Microsoft, OpenAI’s largest existing investor, also declined to comment on SoftBank’s potential entry.

OpenAI is seeking to expand its data center capacity as it faces increasing competition from rivals, including Chinese AI startup DeepSeek, which has demonstrated the ability to match OpenAI’s capabilities at a fraction of the cost. Until now, OpenAI has relied heavily on Microsoft for its computing infrastructure.

SoftBank, which has been searching for a major AI hardware investment, previously explored a $1 billion deal with OpenAI in 2019, but the agreement never materialized.

The Vision Fund later invested $500 million in OpenAI and launched a $1.5 billion tender offer for additional shares last month.

News of SoftBank’s potential investment sent Asian chip stocks rising, while SoftBank shares dipped by 1% in Tokyo trading on Thursday.

“It makes sense that Nasdaq and semiconductor-related stocks are being bought, but SoftBank, which is putting up the money, isn’t going to see the same buying momentum,” said Takehiko Masuzawa, head of equity trading at Phillip Securities Japan.

Skepticism remains over whether Project Stargate represents a significant expansion beyond existing AI data center plans.

Son visited Mar-a-Lago last month, where he announced SoftBank’s $100 billion investment in the U.S. over the next presidential term, with Stargate drawing from that commitment.

With $25 billion in cash reserves and a majority stake in chip designer Arm Holdings Plc, SoftBank has multiple financing options if it proceeds with the OpenAI investment.

However, questions persist over whether the proposed deal will materialize and how it would affect the AI investment landscape.

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