SoftBank reportedly wrapping up $40B investment in OpenAI

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The funding round would rank as one of the largest venture capital funding rounds in history. As of February 7, however, neither SoftBank nor OpenAI has yet confirmed this deal publicly.

The funding amount, however, is contingent on OpenAI restructuring into a for-profit entity —  a somewhat controversial proposition. OpenAI was founded in 2015 as a nonprofit with the stated goal of developing artificial general intelligence (AGI) “to benefit all humanity” and to counterbalance companies like Google. One of the co-founders of the firm, Elon Musk, has sued the firm. While Musk has sued the firm, a federal judge has dismissed some of the claims but allowing some parts of the case to proceed to trial. Meanwhile, OpenAI’s CEO Sam Altman has countered that Musk should be competing in the marketplace rather than the courtroom. In addition, Altman has  highlighted Musk’s early support for a for-profit structure to raise capital for AI development while claiming Musk, at one point, wanted to make OpenAI part of Tesla.

SoftBank’s AI investment strategy and track record

Vision fund and AI focus: SoftBank’s reported move on OpenAI aligns with its broader strategy of bold bets in transformative tech. In 2017, SoftBank launched the Vision Fund, a nearly $100 billion vehicle targeted at disruptive sectors like artificial intelligence. CEO Masayoshi Son is known for high-conviction, long-horizon investing—often discussing a future “singularity” where AI surpasses human intelligence within decades. In 2023, he said that the singularity would be a reality within a decade, and that superintelligence would arise in 20 years.

Masayoshi Son [SoftBank]

Major AI-related deals: SoftBank made a splash in 2016 by acquiring chipmaker ARM for $32 billion, positioning itself at the center of the mobile and IoT chip technology trends. Through its Vision Fund, SoftBank also invested in SambaNova Systems (a $676 million Series D) and was instrumental in funding British AI processor startup Graphcore, later acquiring it. SoftBank has also invested in robotics (Boston Dynamics) and self-driving tech. In October 2024, SoftBank acquired ~$500 million worth of OpenAI shares in a secondary transaction, setting the stage for the larger $40 billion commitment now unfolding.Vision and risk profile: Son’s track record features both triumphs (e.g., a $20 million stake in Alibaba that soared to ~$70 billion) and stumbles (e.g., WeWork’s valuation collapse).

The SoftBank funding would boost the value of the ChatGPT creator to around $300 billion post-money (more recent estimates put it at closer to $260 billion), effectively doubling its valuation from a private round completed just a few months prior. According to CNBC’s reporting, the $40 billion would be paid out over the next 12–24 months, with the first tranche expected in spring 2025. Sources also indicate a portion of this investment (up to $10 billion) may be syndicated to co-investors.

If the deal closes, SoftBank would surpass Microsoft as OpenAI’s top investor.

A portion of SoftBank’s $40 billion will finance OpenAI’s commitment to a new joint venture known as “Stargate,” developed alongside SoftBank and Oracle to build advanced AI infrastructure in the U.S. (details below). Investment documents reportedly feature convertible notes—similar to past OpenAI funding—and require restructuring OpenAI’s governance to eliminate the control held by its non-profit board. According to Reuters,
the deal is conditional on transitioning OpenAI more fully into a for-profit entity.

As of February 2025, neither SoftBank nor OpenAI has publicly confirmed the $40 billion figure, though they have acknowledged collaboration on the Stargate project. SoftBank’s CEO Masayoshi Son and OpenAI’s Sam Altman appeared together at a White House event in January 2025, signaling a deeper partnership.

Implications for OpenAI and Microsoft’s partnership

Changing the top investor: Microsoft has invested more than $13 billion (cash plus cloud credits) in OpenAI since 2019, securing a substantial equity stake and an exclusive cloud partnership for OpenAI’s workloads on Azure. Rumor has it that the relationship has grown more contentious over time. In 2024, Microsoft CEO Satya Nadella said, “It wouldn’t matter if OpenAI disappeared tomorrow. We have the data, IP rights, and all the capability.”

While Microsoft’s investment in OpenAI was pragmatic, SoftBank’s Son shares a similar ideological perspective regarding OpenAI and its CEO Sam Altman. “When I met you when you were younger … you said that you’re going to go for AGI and I immediately said, ‘I believe you. I want to invest.’ From there I was a believer. I never doubted. Most people at that time thought you were crazy, right?” as FT quoted him as saying.

If SoftBank’s $40 billion materializes, SoftBank would likely gain greater equity and governance influence at OpenAI than Microsoft, which would remain a strategic partner and cloud provider. However, Oracle and other partners will also host portions of OpenAI’s future infrastructure (especially under the Stargate joint venture).

OpenAI’s strategy going forward: The influx of capital could accelerate GPT-5 development (which Altman said would represent a similar leap over GPT-4 as that model was over GPT-3), AI product expansion (e.g., ChatGPT Enterprise, new enterprise/government solutions), and possibly hardware initiatives. While OpenAI’s revenues are climbing ($4 billion in 2024 to a projected $11 billion in 2025), they remain modest compared to a $300 billion valuation. The company reported a $5 billion loss in 2024, thanks to significant  operational costs. Investors clearly have a long-term horizon, banking on OpenAI’s position in the quest for AGI. Rivalries may sharpen as Microsoft invests in other AI startups like Anthropic, Meta’s open-source endeavors, Google’s Gemini, and the Chinese reasoning model DeepSeek R1 and beyond.