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SoftBank Eyes $30B OpenAI Boost in AI Race
28 Jan
Summary
- SoftBank is in talks for an additional $30 billion investment.
- OpenAI's valuation could reach $830 billion with new funding.
- This investment aims to bolster SoftBank's position in AI.
SoftBank Group Corp is engaged in advanced discussions to invest an additional $30 billion in OpenAI, the company behind ChatGPT. This potential injection of capital is part of a broader funding initiative that could see OpenAI raise up to $100 billion.
This significant investment would propel OpenAI's valuation to an estimated $830 billion. For SoftBank, this move represents a strategic doubling down on its AI ambitions, aiming to strengthen its competitive stance against major players like Google.
OpenAI faces increasing operational costs related to training and running its advanced AI models. Both OpenAI and SoftBank are also collaborating on Stargate, a major initiative focused on building AI data centers crucial for U.S. technological advancement.
This news follows SoftBank's prior $41 billion investment in OpenAI completed in December, which granted the Japanese conglomerate an 11% stake in the AI firm. The company's shares saw a positive uptick in early Tokyo trading following the report.
