Japan-based SoftBank Group has hinted at a likely investment in artificial intelligence company OpenAI. According to reports, the company could make an investment of about $25 billion in the firm, becoming its biggest financial sponsor. According to a Bloomberg report, the firm is looking to invest funds between $15 and $25 billion.
However, the investment details are still in the initial stages, with the deal likely being called off. Meanwhile, OpenAI is looking to create more data centers immediately to bolster its AI capacities, in the face of growing competition. With firms like DeepSeek already making a play in the market, it is only a matter of time before other firms try to level up. While OpenAI still relies on Microsoft for its cloud computing, SoftBank could provide an advantage as the firm looks for an opportunity to enter the AI business.
SoftBank shares slide 1% amid investment plans
The first meeting between OpenAI and SoftBank happened in 2019 when OpenAI CEO Sam Altman met with the firm’s Masayoshi Son after he proposed a $1 billion investment. The investment collapsed during negotiations. The companies have grown close, bonding over their worries about semiconductors which could affect the AI market. The Vision Fund made a $500 million commitment to OpenAI before introducing an executive share buyback offer of $1.5 billion last month.
The investment news saw most Asian chip stocks rally, including Advantest Corp. However, SoftBank did not benefit from the rally, as its shares dropped by 1% in the early market in Tokyo on Thursday. While the rally is still very much present in the market, the head of equity trading at Philip Securities Japan Takehiko Masuzawa mentioned that SoftBank is not going to experience the same momentum, even though it is the one investing.