SoftBank Group is currently in negotiations to lead a record-setting funding round of up to $40 billion for OpenAI, which aims to value the AI company at $300 billion.

However, this funding is contingent upon OpenAI restructuring its operations to reduce the influence of its non-profit arm.

Meanwhile, the Chinese startup DeepSeek is emerging as a formidable competitor, claiming to develop its AI model at significantly lower costs than its rivals.

If successful, this funding round would set a new record for private company investments.

OpenAI's valuation has surged largely due to the popularity of its AI model, ChatGPT, amidst a wave of increasing investments in AI from competitors like Microsoft and Meta Platforms.

SoftBank CEO Masayoshi Son has approximately $30 billion available for investment, indicating robust financial backing for this deal.

Recently, SoftBank has significantly increased its valuation of OpenAI from $150 billion to $260 billion, reflecting the company's rapid growth.

The Stargate initiative, which follows a previous $15 billion commitment from SoftBank, aims to enhance the United States' position in the global AI competition, particularly against China.

In a related move, Microsoft has announced plans to invest $80 billion in AI development, underscoring the competitive landscape in the industry.

SoftBank's potential commitment to OpenAI could reach $25 billion, with some of these funds possibly being allocated to the Stargate joint venture.