Hajra Naz
OpenAI is reportedly seeking to raise $40 billion in a new funding round, possibly pushing its valuation to an astounding $430 billion. According to The Wall Street Journal, Japan’s SoftBank is driving the venture discourses, pointing to contributing between $15 billion and $25 billion. If finalized, this would make SoftBank one of the biggest money-related supporters of OpenAI, the company behind the progressive AI chatbot, ChatGPT.
Competitive Pressure from Chinese AI Startups
This funding push follows rising competition in the AI landscape, particularly from Chinese startup DeepSeek. The company recently introduced a high-performing AI chatbot at a significantly lower cost than its American counterparts, causing waves in the tech industry.
Unprecedented Valuation Growth in Silicon Valley
OpenAI’s most recent funding round comes just three months after closing a past round that valued the company at $157 billion. If successful, this modern investment would more than double its valuation—an exceptional leap in Silicon Valley history. The massive capital mixture highlights the enormous financial necessities for creating cutting-edge AI models, which request progressed computing power and strong framework.
Read More: Open Source AI Emerges as the Biggest Winner of DeepSeek’s Disruption
OpenAI and SoftBank’s Role in Stargate
Both OpenAI and SoftBank are involved in Stargate, a U.S. initiative announced by former President Donald Trump, aiming to invest up to $500 billion in AI infrastructure. The fresh capital would help OpenAI fulfil its $18 billion commitment to the project. SoftBank, on the other hand, has already pledged over $15 billion to Stargate, with reports suggesting its total investment in OpenAI could surpass $40 billion.
Market Reactions and SoftBank’s AI Ambitions
SoftBank’s stock surged 3% in Tokyo following news of the investment talks. Established by Japanese billionaire Masayoshi Son, SoftBank has a history of striking wagers in the tech world, including early investments in Yahoo! and Alibaba. Whereas a few of its ventures have stumbled, Son has been forcefully pivoting toward AI, leveraging SoftBank’s stake in chip designer Arm.
Elon Musk Criticizes Stargate Initiative
Not everyone is convinced about the Stargate initiative. Tesla CEO Elon Musk, a former OpenAI investor, has been openly skeptical. He recently claimed on X (formerly Twitter) that the project’s key investors “don’t have the money.” In response, OpenAI CEO Sam Altman dismissed Musk’s remarks as “wrong,” continuing their long-standing feud.
Awaiting Official Confirmation
Neither SoftBank nor OpenAI has authoritatively commented on the funding talks. However, with major financial players included and AI competition warming up, this investment round may mark a defining moment in the race for AI supremacy.
