OpenAI’s valuation is now at $300 billion.
Japanese multinational investment company SoftBank is set to lead investment of $40 billion in US-based generative artificial intelligence (GenAI) start-up OpenAI.
This, as the GenAI market is intensifying following the launch of the Chinese-based platform DeepSeek-R1 language model.
The Chinese model has garnered attention for its performance and cost-effectiveness, challenging established players like OpenAI’s ChatGPT.
Following the launch, Sam Altman, CEO of OpenAI, commended DeepSeek’s R1 as “an impressive model, particularly around what they’re able to deliver for the price”.
In a statement, SoftBank says it entered into a definitive agreement with OpenAI and its affiliates to make follow-on investments of up to $40 billion.
SoftBank is planning to syndicate out $10 billion of the up to $40 billion investment to co-investors. Accordingly, the Japanese firm’s effective investment amount is expected to be up to $30 billion.
Over the years, OpenAI has received investments from several major entities, including Microsoft, which has invested over $13 billion in the ChatGPT maker. Other backers are Khosla Ventures, Khosla Ventures, Tiger Global Management and Sequoia Capital.
Says OpenAI in a statement: “Today we’re announcing new funding – $40 billion at a $300 billion post-money valuation, which enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week.
“We’re excited to be working in partnership with SoftBank Group – few companies understand how to scale transformative technology like they do. Their support will help us continue building AI systems that drive scientific discovery, enable personalised education, enhance human creativity, and pave the way toward AGI [artificial generative intelligence] that benefits all of humanity.”
SoftBank adds that with the centre of the “information revolution” having evolved from personal computers, the internet and broadband, to smartphones, it has now entered a new phase led by AI.
“In this context, SoftBank has declared its mission to realise artificial super-intelligence (ASI) for the advancement of humanity,” the company notes.
“Recognising OpenAI as the partner closest to achieving AGI, a key milestone on the path to ASI, and its mission of ensuring AGI benefits all of humanity, SoftBank has positioned OpenAI as its most important partner and invested $2.2 billion in total through SoftBank Vision Fund 2 since September 2024.”
According to SoftBank, the advancement of OpenAI’s AI models is key to achieving AGI and ASI, and massive computing power is essential.
“To that end, SoftBank announced the ‘Stargate Project’ together with OpenAI on 21 January 2025, to build dedicated AI infrastructure for OpenAI in the United States.”
As part of the transaction, the payment of $10 billion to OpenAI Global scheduled for April 2025 is expected to be financed through borrowings from Mizuho Bank, among other financial institutions, excluding the syndicated amount, says SoftBank.
