SoftBank is planning an important next step: Investing up to $25 billion in OpenAI. This move would position the Japanese company as the largest financial backer of ChatGPT. The timing of this investment is particularly noteworthy.
Stargate. The recent announcement of the Stargate Project has strengthened the relationship between OpenAI and SoftBank. The initiative involves multiple companies (including OpenAI and SoftBank) collaborating to invest $500 billion in developing a comprehensive network of AI data centers in the U.S.
Jony Ive’s project. In September 2023, The Information reported that OpenAI CEO Sam Altman and former Apple designer Jony Ive met to discuss the joint development of an AI-enabled hardware device. SoftBank expressed strong interest and invested in this project, although specific details about these efforts have been sparse.
The OpenAI-Microsoft relationship has been cooling. In recent months, the alliance forged by Microsoft’s substantial investment at the beginning of 2023 appears to have weakened. A year later, Microsoft began exploring alternatives to reduce its dependence on OpenAI, indicating that this partnership may have a limited lifespan. With Microsoft emerging as a clear competitor to OpenAI, the previously harmonious relationship is now showing signs of strain.
SoftBank, the latest suitor. The Japanese company is poised to play a crucial role in the future of OpenAI. According to the Financial Times, SoftBank plans to invest between $15 billion and $25 billion in the AI startup. However, it’s important to note that this amount is in addition to the roughly $15 billion SoftBank will contribute to the Stargate Project.
Spendthrift OpenAI. The company continues to spend cash at an alarming rate. The $6.6 billion raised in October 2024 falls significantly short of OpenAI’s fundraising goals. While many other AI startups are securing substantial investments, the partnership between OpenAI and SoftBank could set a new record.
ARM. Another key aspect of this potential alliance is ARM, a long-established leader in mobile chip development. ARM aims to become a major player in the AI chip market, which could play a vital role in the alliance and its integration with the Stargate Project.
Image | Focal Foto | Alpha Photo
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