Odaily News The deal being struck between SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman is unprecedented in both size and structure, with negotiations between the two parties taking place in two phases, according to people familiar with the matter. First, SoftBank will conduct an exclusive round of financing, committing to invest up to $40 billion in OpenAI. SoftBank is not expected to provide all the funds alone and has the right to invite other partners to participate in this round of financing. A person with direct knowledge of the plans said OpenAI can approve or veto new investors. This round of financing is expected to value OpenAI at $260 billion.
In the second phase, SoftBank plans to initially invest about $15 billion to $20 billion in Stargate. OpenAI has agreed to match whatever SoftBank puts into the infrastructure project.
The partners, including Abu Dhabi state fund MGX and Stargate Equity Investors, intend to make further investment decisions after seeing the project progress, according to three people familiar with the matter.
OpenAI and SoftBank declined to comment. (FT)