In a landmark move within the artificial intelligence (AI) industry, Japan’s SoftBank Group is poised to invest $40 billion in OpenAI, the renowned AI research organization. This substantial investment is set to elevate OpenAI’s valuation to approximately $300 billion, surpassing Microsoft’s previous $13 billion investment and positioning SoftBank as OpenAI’s largest backer.Â
Strategic Allocation of Funds
A significant portion of SoftBank’s investment is earmarked for the ambitious “Stargate” project, a joint venture between OpenAI, SoftBank, Oracle, and MGX. Announced in January 2025, Stargate aims to invest up to $500 billion in AI infrastructure across the United States by 2029, marking it as the largest AI infrastructure initiative to date. The project is expected to generate over 100,000 jobs, contributing to national reindustrialization and security efforts.
Expansion into the Japanese Market
Beyond the Stargate initiative, OpenAI and SoftBank have announced the formation of a joint venture named “SB OpenAI Japan.” This collaboration is designed to market OpenAI’s enterprise solutions within Japan, offering advanced AI services tailored to the needs of Japanese businesses. SoftBank has committed to investing $3 billion annually to integrate OpenAI’s technologies across its subsidiaries, including British chip designer Arm.
Implications for the AI Industry
This investment underscores the escalating competition in the AI sector, particularly in the realm of generative AI. With projections indicating that the generative AI market could surpass $1 trillion in revenue within the next decade, major tech companies are intensifying their investments to secure leading positions. Notably, Amazon has announced plans to invest $100 billion in AI initiatives, reflecting the industry’s rapid growth and the high stakes involved.
SoftBank’s substantial financial commitment to OpenAI not only highlights its confidence in the future of AI but also signifies a strategic shift in the industry’s investment landscape, with major players vying for dominance in this transformative field.
