SoftBank may invest up to $25 billion in OpenAI as part of a major AI deal
![An innovative leap: SoftBank plans multi-billion dollar injection into OpenAI SoftBank is preparing a mega-investment in OpenAI worth up to $25 billion](/media/post_big/ftcms_1300782c-b76d-4f9a-8b05-5e.jpg)
SoftBank is negotiating an investment in OpenAI worth up to $25 billion as part of a major deal that could include more than $40 billion for the development of artificial intelligence.
Here's What We Know
If the deal goes through, SoftBank will become the largest investor in OpenAI, surpassing Microsoft, which first invested in the company in 2019.
These negotiations come after both companies announced a joint investment in the Stargate project, a US data centre for OpenAI. The project could raise up to $500 billion in four years, and SoftBank is ready to invest between $15 billion and $25 billion in OpenAI, in addition to the $15 billion planned for Stargate.
The deal could help OpenAI reduce its dependence on Microsoft, which recently agreed to give up its status as the company's exclusive cloud provider.
The SoftBank building. Image: Reuters
The negotiations take place against the backdrop of the news about the Chinese company DeepSeek, which released its R1 model for artificial intelligence. Its cheaper production has raised concerns among investors about whether expensive hardware is needed to achieve the same results. As a result, Nvidia lost almost $589 billion in one day.
OpenAI accused DeepSeek of using its proprietary models to train R1 through a method known as "distillation", which allows for cheaper models to be created with less effort, in violation of OpenAI's terms.
According to Bloomberg, in August, OpenAI and Microsoft launched an investigation and blocked accounts suspected of violating the terms of use. They now believe that these accounts belonged to DeepSeek.
Source: Financial Times