SoftBank (SFTBY) has launched a joint venture with Microsoft (MSFT)-backed OpenAI to accelerate AI adoption in Japan amid the rising threat of China’s DeepSeek and its cost-effective AI models. The affordability of DeepSeek’s newly launched R1 model has raised significant doubts about the necessity of large-scale AI investments by global tech giants. Through this partnership, SoftBank and OpenAI have formed a 50-50 joint venture aimed at providing advanced AI (artificial intelligence) solutions to businesses in Japan.
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SoftBank, OpenAI to Revolutionize Business AI
As part of this new partnership, the companies will create a joint venture named SB OpenAI Japan. It will be co-owned by OpenAI and a newly formed entity backed by SoftBank. The joint venture aims to be a launchpad for delivering AI agents tailored specifically for Japanese businesses while setting a precedent for global adoption.
Meanwhile, SoftBank introduced its new AI product, Cristal, designed to offer personalized support for businesses by analyzing system data, reports, emails, and meetings in real time. In addition, SoftBank will invest $3 billion annually to integrate OpenAI’s technology across its group companies.
SoftBank Expands AI Bet with Deeper Ties to OpenAI
The announcement comes as SoftBank’s Masayoshi Son seeks to expand the company’s ties with OpenAI. Reports last week suggested SoftBank could invest up to $40 billion in the ChatGPT creator, marking its largest investment to date. This deal would elevate OpenAI’s valuation to $300 billion, nearly doubling its previous $157 billion valuation.
Additionally, SoftBank has committed $19 billion to a major new AI infrastructure venture, Stargate, announced by U.S. President Donald Trump. SoftBank’s Son will serve as chairman of the project, with key partners including Arm (ARM), Microsoft (MSFT), Nvidia (NVDA), Oracle (ORCL), and OpenAI.
Which Stargate Stock Could Deliver the Highest Upside?
Using the TipRanks Stock Comparison Tool, we’ve compared three Stargate stocks to identify the one with the highest upside potential, based on analyst ratings.
In terms of share price upside, Microsoft offers a growth potential of 22.51% with a Strong Buy rating from analysts. Meanwhile, analysts are moderately bullish on Oracle, projecting a 13.4% growth potential. In contrast, SoftBank is expected to see the least growth, with an average price target of $32.20, reflecting a gain of just 4.8%.
