SoftBank is considering a new investment in OpenAI that could amount to $30 billion. This would further strengthen the Japanese technology conglomerate’s position with one of the most influential AI developers.
The plans were reported on by Bloomberg. The talks are still in the early stages, but they once again underscore the scale of founder Masayoshi Son’s ambitions in the field of artificial intelligence.
The news immediately caused movement on the stock market. SoftBank shares initially shot up in Tokyo, although some of those gains were later relinquished. Investors have long viewed the group as an indirect way to profit from the rise of OpenAI, as SoftBank is now one of the largest financiers of the company behind ChatGPT. Last month alone, the group is said to have contributed more than $20 billion, representing a stake of approximately 11%.
The potential additional investment is part of a broader strategy in which SoftBank is reorganizing its portfolio to maximize its focus on AI. Recently, the company sold interests in other technology companies and temporarily put plans for some acquisitions on hold. At the same time, SoftBank freed up capital by divesting its position in Nvidia and using other financial structures, including Arm shares as collateral.
Fifty billion financing round
OpenAI itself is also actively seeking new funding. CEO Sam Altman (photo) is in talks with investors in the Middle East and elsewhere to set up a new financing round. According to sources, that round could amount to at least $50 billion, with a valuation approaching $800 billion. This would make OpenAI one of the most highly valued private technology companies in the world.
However, there are also some caveats. Competition in the field of generative AI is rapidly increasing, with major players aggressively marketing their own models and platforms. This makes the future outlook less clear-cut than a year ago, when ChatGPT was virtually synonymous with generative AI. Analysts note that the market is becoming more critical and that high expectations also entail risks.
In addition, SoftBank itself is under pressure. Credit rating agencies have recently warned that the combination of heavy AI investments and fluctuations in the value of important holdings, such as Arm, could have consequences for the group’s financial position. Despite these concerns, Son remains committed to his vision that artificial intelligence is the next major technological revolution. With a potential additional investment of tens of billions of dollars, SoftBank is showing its willingness to continue to bet heavily on that conviction, even if it involves considerable risks.