SoftBank, under the leadership of CEO Masayoshi Son, is finalizing a substantial investment in OpenAI, the renowned artificial intelligence research organization led by CEO Sam Altman. The deal, valued at $40 billion, will position OpenAI at a valuation of $260 billion.  

 

Key Details of the Investment:

 

• Investment Structure: SoftBank plans to invest between $15 billion and $25 billion directly into OpenAI. The remaining funds are expected to be raised from other investors, bringing the total to $40 billion. This investment is anticipated to be in the form of convertible notes, which can later be converted into equity.  

   

• Valuation: The investment will value OpenAI at $260 billion pre-money, potentially elevating its post-money valuation to $300 billion, making SoftBank the largest investor, surpassing Microsoft's previous investments.

  

Stargate Project Collaboration:

 

A significant portion of this investment is earmarked for the "Stargate" project, a joint venture between OpenAI, SoftBank, Oracle, and MGX. Announced in January 2025, Stargate aims to invest up to $500 billion in AI infrastructure across the United States by 2029. The project plans to establish a network of large data centers to support AI advancements, with initial sites under consideration in Texas, Oregon, Pennsylvania, and Wisconsin.  

 

Strategic Implications:

 

This investment underscores the deepening partnership between Masayoshi Son and Sam Altman, both of whom are committed to advancing artificial intelligence. The collaboration is expected to enhance OpenAI's computational capabilities, enabling the development of more advanced AI models and applications. Additionally, the Stargate project is poised to strengthen the U.S.'s position in the global AI race, particularly against emerging competitors like China's DeepSeek.  

 

In summary, SoftBank's $40 billion investment in OpenAI represents a significant milestone in the AI industry, highlighting the growing importance of strategic partnerships and substantial funding to drive innovation and maintain a competitive edge in the rapidly evolving field of artificial intelligence.