Japan’s SoftBank and OpenAI are reportedly negotiating a deal that could make SoftBank the largest single shareholder of the ChatGPT creator. Currently, Microsoft holds this title, having invested $13 billion, marking their commitment to the AI sector.
The exact scale of Microsoft’s ownership isn’t clear, partly due to OpenAI’s transition from a non-profit to a for-profit entity. Both companies are consulting with investment banks to estimate Microsoft’s actual share. Regardless of these calculations, SoftBank’s possible investment could surpass it soon.
The Financial Times reports that SoftBank is considering an investment ranging from $15 billion to $25 billion in OpenAI. This would add to its $15 billion dedication to the Stargate Project, a bold initiative, backed by Oracle and MGX, to enhance OpenAI’s US infrastructure with an astonishing $500 billion budget.
Although the final amount is yet to be decided, SoftBank’s CEO, Masayoshi Son, has already discussed the investment with OpenAI’s board and leaders. Despite past criticisms of Son’s tech investment strategies, an infusion of $15 or $25 billion might indicate confidence in OpenAI. This comes at a time when OpenAI likely faced a $5 billion loss against $3.7 billion revenue last year, as reported by the New York Times.
SoftBank’s Vision Fund, established in 2017 with $100 billion, has faced hurdles with many of its tech bets falling short. The fund witnessed a record $27.4 billion loss in fiscal 2022 and surpassed that with a $32 billion loss the following year. Despite this, AI’s current allure makes SoftBank’s latest interest in OpenAI a potentially promising venture.
However, the competitive landscape is shifting. DeepSeek, a new player from China, offers similar AI capabilities at considerably lower computing costs. This new development has resulted in a notable decline in chip maker Nvidia’s shares and raised concerns over US dominance in AI.
