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    Home » SoftBank Plans Landmark Investment in OpenAI
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    SoftBank Plans Landmark Investment in OpenAI

    Jerry JacksonBy Jerry JacksonJanuary 31, 2025Updated:February 11, 2025No Comments2 Mins Read
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    SoftBank OpenAI investment
    SoftBank OpenAI investment
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    SoftBank is considering a massive investment of up to $25 billion in OpenAI, the company behind ChatGPT. If the deal moves forward, SoftBank would become OpenAI’s largest financial backer. Reports indicate the investment could range between $15 billion and $25 billion, emphasizing SoftBank’s deep commitment to artificial intelligence.

    Strengthening OpenAI’s AI Expansion

    SoftBank already holds a stake in OpenAI and recently participated in a funding round that valued the company at $157 billion. Microsoft, OpenAI’s primary shareholder, also joined that round. SoftBank has a history of investing in major tech companies like ByteDance (TikTok’s parent) and Arm (the British chip manufacturer), reinforcing its focus on innovation.

    To expand AI infrastructure, OpenAI, SoftBank, and Oracle have partnered to develop Stargate, a large-scale data center project. Former U.S. President Donald Trump described it as “the most significant AI infrastructure project ever”, with an estimated $100 billion initial investment. Reports suggest SoftBank’s equity in OpenAI would also help fund its role in the Stargate initiative.

    However, doubts have emerged. Elon Musk questioned whether Stargate’s backers actually have the necessary funds to execute the project. In response, OpenAI’s CEO, Sam Altman, dismissed these concerns, emphasizing the project’s role in advancing U.S. technological leadership. He urged Musk to focus on the country’s interests rather than business rivalries.

    Intensifying AI Competition and Global Impact

    OpenAI faces rising competition, especially from China. The Chinese AI startup DeepSeek recently introduced a chatbot that quickly became the most downloaded free app on Apple’s store. This development caused a sharp decline in AI-related stock values.

    Altman initially praised DeepSeek, calling its emergence “genuinely inspiring”. However, OpenAI later claimed that some Chinese firms were using its technology to create rival AI models. These concerns have reignited debates about intellectual property rights and AI security.

    SoftBank’s CEO, Masayoshi Son, has already presented the investment proposal to OpenAI’s board. While discussions are ongoing, no final agreement has been reached. If approved, this deal would be one of the largest AI investments ever. It would further establish OpenAI as a global leader in artificial intelligence, driving innovation and shaping the future of the industry.

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    Jerry Jackson
    Jerry Jackson
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    Jerry Jackson is an experienced news reporter and editor at EuroNews24, specializing in a wide range of topics, from current events to in-depth analysis. Known for his thorough research and clear reporting, Jerry ensures that the content is both accurate and engaging for readers.

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