SoftBank’s Huge Move with 40 Billion Dollar Investment in OpenAI
SoftBank, Japan’s second-largest telecommunications company, is preparing to make a $40 billion investment in the artificial intelligence giant OpenAI, based on a valuation of $260 billion. The funds are expected to be used partially for the Stargate project announced by U.S. President Donald Trump.
SoftBank is nearing completion of a primary investment of $40 billion at a valuation of $260 billion in OpenAI, the creator of the artificial intelligence ChatGPT. According to CNBC, SoftBank will complete the funding that implies a post-money valuation of $300 billion for OpenAI within the next 12 to 24 months.
SoftBank is capable of providing syndication for up to $10 billion of this amount.
SURPASSING MICROSOFT
The new fund will mean SoftBank surpassing Microsoft as the biggest supporter of its artificial intelligence initiative.
VALUED AT $300 BILLION
The latest valuation of OpenAI by private investors in October was $157 billion.
Initially, a valuation of $340 billion was expected for OpenAI, but a knowledgeable source later told CNBC that the amount is likely to be close to $300 billion.
WHAT IS THE STARGATE PROJECT?
Sources speaking to CNBC said that some of the funding is expected to be used for OpenAI’s commitment to Stargate.
The Stargate project is a joint venture announced by U.S. President Donald Trump in January between SoftBank, OpenAI, and Oracle.
With this project, billions of dollars are expected to be invested in the artificial intelligence infrastructure of the U.S.
SPECIAL ARTIFICIAL INTELLIGENCE DESIGNED FOR THE U.S. GOVERNMENT
In January, OpenAI launched a new artificial intelligence platform called ChatGPT Gov, specially designed for the U.S. government.
The venture claimed that the new platform, ChatGPT Gov, is more secure than ChatGPT Enterprise.
The company stated that ChatGPT Gov would allow government agencies to feed sensitive information, both classified and unclassified, into OpenAI models, all done within their secure hosting environments.
Altman had donated $1 million to Trump’s presidential inauguration and had attended the inauguration alongside other technology CEOs to express his admiration for Trump to the public.
