SoftBank in Talks for Major Investment in OpenAI

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SoftBank is reportedly negotiating a significant investment of up to $25 billion in OpenAI, which would solidify its position as the largest financial backer of the San Francisco-based startup known for creating ChatGPT. According to the Financial Times, the Japanese investment group is considering an equity investment ranging from $15 billion to $25 billion, which would also support its joint venture with Oracle called Stargate, touted as “the largest AI infrastructure project in history” with an initial commitment of $100 billion.

OpenAI’s valuation surged to $157 billion following a recent funding round that included participation from Microsoft, its largest shareholder. This move comes amid heightened competition from Chinese firm DeepSeek, which recently gained popularity with its chatbot, impacting AI-related stock prices.

Elon Musk publicly questioned the financial backing for Stargate, while OpenAI's CEO Sam Altman has countered these claims, emphasizing that the proposal is beneficial for the country. Both OpenAI and SoftBank remain tight-lipped on the negotiations, which have been reviewed by OpenAI's executives and board but are yet to be finalized.

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