OpenAI Shifts Focus Toward SoftBank, Reducing Microsoft Reliance: Report

 

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OpenAI Strengthens Financial Ties with SoftBank, Reduces Dependence on Microsoft

OpenAI is reportedly turning to Japanese tech giant SoftBank for substantial financial backing, signaling a shift away from its current reliance on Microsoft’s infrastructure. According to The Information, OpenAI’s recent forecasts to investors show plans for SoftBank to play a much larger role in funding the company’s future projects, particularly the ambitious Stargate Project.

The Stargate Project: A Massive AI Infrastructure Push

The Stargate Project, announced last month, is poised to become one of the largest artificial intelligence infrastructure initiatives in the United States. The project, estimated at $500 billion, is set to unfold over the next four years. OpenAI has indicated that SoftBank could supply up to three-quarters of the computing power needed for the project by 2030.

Currently, Microsoft serves as OpenAI’s primary provider for computing power and data center support. However, this partnership may see a gradual reduction in spending as SoftBank takes on a larger role. While Microsoft’s support remains critical for now, OpenAI’s future projections suggest a slow but steady decline in dependency.

SoftBank’s Investment Could Hit $30 Billion

SoftBank, led by Masayoshi Son, could invest as much as $30 billion into OpenAI, with an additional $10 billion expected from co-investors. These potential investments could push OpenAI’s valuation to $260 billion, signaling growing investor confidence in the company’s long-term vision.

A significant portion of these funds—around 50%—is expected to be allocated to the Stargate Project. In addition to SoftBank, key partners in this initiative include Oracle, Arm, Microsoft, and Nvidia, which are all set to play strategic roles in supporting the project's infrastructure.

Microsoft Still in the Picture—For Now

Despite the shift toward SoftBank, OpenAI is not cutting ties with Microsoft anytime soon. The company is projected to increase its spending on Microsoft’s data centers from $13 billion in 2025 to $28 billion by 2028. This continued investment underlines Microsoft’s enduring role in OpenAI’s immediate technological infrastructure.

However, the long-term trajectory indicates that SoftBank will gradually absorb a more significant share of OpenAI’s computing needs. This strategic realignment could reshape the competitive dynamics between tech giants vying for dominance in AI infrastructure.

Revenue Projections Paint a Rosy Picture for OpenAI

OpenAI’s growth isn’t just about infrastructure investments—it’s also about rapid revenue expansion. Investor forecasts suggest that the company’s revenue could soar from $3.7 billion in 2024 to over $12.5 billion in 2025. By 2026, projections indicate potential revenue reaching as high as $28 billion.

This surge in revenue coincides with OpenAI’s growing user base. Earlier this week, the company reported surpassing 400 million weekly active users of its popular ChatGPT platform, up from 370 million just a month prior. This rapid growth solidifies OpenAI’s leading position in the fintech and AI markets.

What This Means for the Future of AI Investments

The increased involvement of SoftBank signals a potential shift in how major AI initiatives will be funded and managed. With significant financial backing from a major global player, OpenAI could accelerate the development of advanced AI systems while diversifying its financial dependencies.

For Microsoft, the evolving relationship with OpenAI presents both challenges and opportunities. While its immediate revenues from OpenAI are set to rise, its long-term dominance as the company’s primary infrastructure provider could diminish if SoftBank's investments fully materialize.

Conclusion

OpenAI’s growing alliance with SoftBank marks a pivotal moment in the company’s development strategy. As the Stargate Project takes shape, the influence of major global investors like SoftBank will likely redefine the competitive landscape for AI and fintech innovations. Meanwhile, Microsoft’s continued involvement ensures that its role remains relevant, at least in the near term.

This shift reflects broader trends in the tech industry, where companies are diversifying their partnerships and financial strategies to meet the increasing demands of AI-driven innovation.