OpenAI, the San Francisco-based artificial intelligence company, is currently in talks with Japanese conglomerate SoftBank for a potential investment of up to $25 billion. This investment could potentially cover OpenAI’s commitment to the $100 billion Stargate data center project, but would be separate from the funding SoftBank is already contributing to that initiative.
Sources familiar with the negotiations have revealed that the investment could potentially value OpenAI anywhere from $250 billion to $340 billion, making it one of the most valuable private companies in the world. The Stargate project, a joint venture between SoftBank, OpenAI, and Oracle, aims to bring about $500 billion of investment in computing infrastructure.
OpenAI, which kicked off the AI boom in late 2022 with the release of its online chatbot ChatGPT, has faced challenges in recent years including the unexpected firing of its CEO Sam Altman. Despite these challenges, the company has managed to raise significant funds and develop new AI technologies like OpenAI o3.
Some industry experts have raised questions about the necessity of investing billions in new data centers, particularly in light of competitors like DeepSeek, a Chinese startup that claims to have developed AI technology at a lower cost. However, many still believe that significant computing power will provide companies like OpenAI with a competitive advantage.
The negotiations between OpenAI and SoftBank highlight the continued interest and investment in artificial intelligence technology, and the potential for significant growth and innovation in the industry.
Erin Griffith contributed reporting to this article.
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