SoftBank is in talks to invest up to $30 billion more in OpenAI, according to people familiar with the matter, adding to the Japanese conglomerate’s already-large stake in the startup.
The ChatGPT maker is seeking up to $100 billion in new capital from investors, a round that could value it at as much as $830 billion, if it succeeds in raising the full amount, The Wall Street Journal previously reported. The deal talks are ongoing and terms could still change.
SoftBank is already one of OpenAI’s largest shareholders with a stake that grew to 11% in December, when it invested $22.5 billion. In a statement at the time, SoftBank Chairman Masayoshi Son said the firm was “deeply aligned with OpenAI’s vision.”
To fund that OpenAI bet, SoftBank said it sold its stake in chip maker Nvidia for $5.8 billion.
OpenAI needs substantial funding to continue developing its artificial intelligence models, paying for its vast computing needs and retaining top researchers in an increasingly competitive market.
OpenAI, which is weighing a potential initial public offering, is also aiming to raise capital from Middle Eastern sovereign-wealth funds and other venture capital funds. The company’s existing investors include Thrive Capital, Khosla Ventures and MGX, the United Arab Emirates fund.
News Corp, owner of The Wall Street Journal, has a content-licensing partnership with OpenAI.
Write to Kate Clark at kate.clark@wsj.com