This potential investment by SoftBank Group into OpenAI would significantly reshape the AI landscape, especially given SoftBank's history of aggressive AI-related investments. If the deal goes through, it would further solidify OpenAI's financial backing beyond Microsoft and potentially accelerate AI infrastructure expansion under Project Stargate.

Figure 1. SoftBank Mulls $25 Billion Investment in OpenAI to Become Major Backer.

However, the emergence of DeepSeek R1 as a cost-effective alternative raises concern about whether massive investments in AI infrastructure remain the best strategy. If models like DeepSeek can rival GPT-4 with older hardware and lower budgets, OpenAI and its investors might need to reassess their long-term approach. The market reaction, as seen in SoftBank’s stock drop, suggests that investors are already questioning the sustainability of these high-cost AI initiatives. Figure 1 shows SoftBank Mulls $25 Billion Investment in OpenAI to Become Major Backer.

The Investment Proposal

• Overview of SoftBank’s reported talks to invest up to $25 billion in OpenAI.
• How this would make SoftBank one of OpenAI’s biggest financial backers after Microsoft.
• The connection between this deal and Project Stargate, a $500 billion AI infrastructure initiative.

SoftBank’s AI Strategy & Masayoshi Son’s Vision

• SoftBank’s AI-focused expansion, spanning chipmaking, robotics, and energy.
• Masayoshi Son’s past bets on AI and how OpenAI fits into his long-term strategy.
• The role of Arm Holdings, a SoftBank-owned chipmaker, in this AI revolution.

OpenAI’s Growth & Microsoft’s Influence

• OpenAI’s rise as a dominant force in generative AI (ChatGPT, DALL·E, etc.).
• Microsoft’s existing multi-billion-dollar investment and partnership with OpenAI.
• How a major SoftBank investment could change the power dynamics within OpenAI.

Project Stargate & AI Infrastructure Race

• Explanation of Project Stargate and why OpenAI and SoftBank are investing in AI infrastructure.
• Comparison with competitors like NVIDIA, Google DeepMind, and Amazon AI.
• The significance of AI supercomputing in staying ahead in the AI arms race.

Competition from Low-Cost AI Models (DeepSeek R1 & Others)

• The rise of DeepSeek R1, a low-cost Chinese AI model challenging OpenAI’s dominance.
• How DeepSeek claims to match GPT-4’s performance using older, cheaper hardware.
• What this means for OpenAI and its high-cost investment strategy.

Financial & Market Impact

• How SoftBank’s stock lost 12% of its value after AI investment concerns.
• Investor skepticism about the necessity of large-scale AI spending.
• The risk-reward scenario for SoftBank’s $25 billion gamble on OpenAI.

The Future of AI & SoftBank’s Role

• How this investment could shape the next phase of AI innovation.
• Potential risks: AI regulation, ethical concerns, and market competition.
• Could SoftBank become the next kingmaker in AI, or is this another high-risk bet?

Source: Business Standard

Cite this article:

Priyadharshini S (2025),"Softbank Considers Investing Up To $25 Billion In Openai to Become a Leading Backer",AnaTechmaz, pp. 63