SoftBank Group is in talks to invest as much as $30 billion more in OpenAI, according to reports that cited people familiar with the discussions. The talks would deepen SoftBank’s involvement with the ChatGPT maker as OpenAI seeks a massive new funding round.
The Wall Street Journal reported the potential investment, and multiple outlets said the discussions are ongoing and the terms could still change. Japan Times reported that SoftBank is already one of OpenAI’s biggest backers and that the company is considering a maximum additional commitment of $30 billion.
OpenAI fundraising target and valuation
OpenAI is seeking to raise as much as $100 billion in new funding, according to the Wall Street Journal as cited by Investing.com and Morningstar. Morningstar reported that if OpenAI raises the full amount, the funding round could value the company at up to $830 billion.
Japan Times also described the talks as fluid and said the funding amount SoftBank may commit could change. Investing.com similarly said the discussions are ongoing and that terms could still change.
SoftBank’s existing OpenAI stake
SoftBank is already one of OpenAI’s largest shareholders, according to Investing.com. Investing.com and Morningstar both reported that SoftBank’s stake grew to about 11% in December after it invested $22.5 billion.
Japan Times reported that the Tokyo-based company had amassed an 11% stake in OpenAI and said it injected $22.5 billion “just last month.” In its report, Japan Times said SoftBank founder Masayoshi Son has been increasing the company’s commitment as part of ambitions to play a central role in developing artificial intelligence.
SoftBank shares rise, with differing snapshots
SoftBank shares rose in Tokyo following the reports of the potential additional OpenAI investment, according to Japan Times and Morningstar. Japan Times reported SoftBank shares rose 5.8% in Tokyo on Wednesday. Morningstar reported shares were recently 3.4% higher at 4,190 yen in Tokyo on Wednesday.
Morningstar also quoted Tomoichiro Kubota, a senior market analyst at Matsui Securities, saying progress in OpenAI’s fundraising is positive for SoftBank shares in the near term because it shows investors are willing to acquire shares at those valuations. However, Morningstar reported Kubota also pointed to rising competition from rivals such as Anthropic and Google’s Gemini, and quoted him saying, “The competitive environment is getting more severe.”
Other moves mentioned in reports
Japan Times reported that Son has been unwinding positions to increase SoftBank’s stake in OpenAI and to ready capital for sweeping investments aimed at injecting AI into devices. Japan Times said SoftBank sold its stake in Nvidia and recently paused talks to buy out U.S. data center operator Switch.
Investing.com reported that OpenAI is weighing a potential IPO and is courting Middle Eastern sovereign wealth funds and venture capital investors. The same report said SoftBank’s potential new investment would further deepen its exposure to OpenAI.
