SoftBank Group is reportedly in talks to lead a massive funding round of up to $40 billion in OpenAI, valuing the AI company at around $300 billion, including the new investment. If finalized, this could be one of the largest single funding rounds for a private company.
The funding comes as Chinese startup DeepSeek has gained global attention by launching an affordable AI model, challenging the idea that AI development requires massive investment.
According to sources, SoftBank currently values OpenAI at $260 billion—up from $150 billion just a few months ago. The investment will likely come in the form of convertible notes and will depend on OpenAI restructuring its business to reduce control from its non-profit arm, similar to its last funding round.
This move would be a major step for SoftBank and its CEO, Masayoshi Son. The company has about $30 billion in cash available, according to filings. If the deal goes through, SoftBank could invest between $15 billion and $25 billion directly into OpenAI, which is backed by Microsoft. Some of these funds may also support OpenAI’s commitment to “Stargate”—a joint venture with Oracle and SoftBank aimed at keeping the U.S. ahead in the AI race. Stargate is expected to invest up to $500 billion in AI development.
SoftBank has already committed $15 billion to Stargate, and discussions for additional investments are still in the early stages.
Meanwhile, tech giants Microsoft and Meta have also defended their massive AI spending. Microsoft has allocated $80 billion for AI this fiscal year, while Meta has committed up to $65 billion, emphasizing the importance of AI in maintaining a competitive edge.
DeepSeek has surprised the AI industry by claiming that training its latest model, DeepSeek-V3, cost less than $6 million using Nvidia’s H800 chips. The company used a technique called “model distillation” to build on existing AI models, including those from OpenAI. This has raised concerns among investors about whether OpenAI can stay ahead and continue generating revenue while facing competition from lower-cost rivals.
SoftBank and OpenAI have not commented on the funding talks, and details are still being worked out.