AsianFin -- SoftBank is on the verge of completing a $40 billion primary investment in OpenAI, valuing the artificial intelligence startup at $260 billion pre-money.

The investment, which would elevate OpenAI’s post-money valuation to $300 billion, is expected to be disbursed over the next 12 to 24 months, with the first installment potentially arriving as early as spring 2024. SoftBank also has the option to syndicate up to $10 billion of the total investment.

This substantial funding would position SoftBank as OpenAI’s largest backer, surpassing Microsoft’s previous top investor status. OpenAI was last valued at $157 billion by private investors in October 2023. Initially, the funding round was anticipated to value OpenAI at $340 billion, but a source familiar with the negotiations later indicated that the valuation would likely settle closer to $300 billion.

A portion of the investment is expected to support OpenAI’s involvement in Stargate, a joint venture between SoftBank, OpenAI, and Oracle. Announced by U.S. President Donald Trump in January 2024, Stargate aims to channel billions of dollars into advancing U.S. AI infrastructure.

The collaboration underscores the growing emphasis on bolstering domestic AI capabilities through strategic partnerships and significant capital investments.