SoftBank, Japan’s second-largest telecommunications company, is nearing completion of a primary investment of $40 billion in artificial intelligence creator OpenAI, valued at $260 billion. According to CNBC, SoftBank will conduct the funding, which signifies a post-money valuation of $300 billion for OpenAI, within the next 12 to 24 months.

SoftBank can provide syndication for up to $10 billion of this amount.

LEADING AHEAD OF MICROSOFT
The new fund means SoftBank will outshine Microsoft as the biggest supporter of its artificial intelligence initiative.

VALUED AT $300 BILLION
Previously, private investors valued OpenAI at $157 billion in October.

Initially expected to be valued at $340 billion, a knowledgeable source later informed CNBC that the amount would be closer to $300 billion.

WHAT IS THE STARGATE PROJECT?
Sources speaking to CNBC indicated that a portion of the fund is expected to be used for OpenAI’s commitment to Stargate.

The Stargate project, a joint venture announced by President Donald Trump in January among SoftBank, OpenAI, and Oracle, is expected to involve billions of dollars of investment in the U.S. artificial intelligence infrastructure.

SPECIAL ARTIFICIAL INTELLIGENCE DESIGNED FOR U.S. GOVERNMENT
In January, OpenAI released ChatGPT Gov, a specially designed artificial intelligence platform for the U.S. government.

The initiative claimed that the new platform, ChatGPT Gov, is more secure than ChatGPT Enterprise.

The company stated that ChatGPT Gov would allow government agencies to feed OpenAI models with “sensitive, non-public information” and do so within their secure hosting environments.

Altman, along with other tech CEOs, donated $1 million to Trump’s inauguration and expressed his admiration for Trump by attending the ceremony.