Major Japanese Conglomerate in Talks to Pump Up to $30 Billion into Leading AI Developer

A source familiar with the matter says a major Japanese conglomerate is in talks to inject as much as $30 billion more into a leading AI developer. The fresh capital would be part of a broader funding round that could raise up to $100 billion, valuing the AI company at roughly $830 billion.

After the report broke, the conglomerate’s shares climbed more than 3% before the market opened, showing investors’ confidence in the move.

The conglomerate has already put in $41 billion for an 11% stake in the AI developer, a move that came after its CEO declared an “all‑in” strategy to dominate the artificial‑intelligence race. The hefty investment forced the conglomerate to slow down most other deal‑making activities within its investment arm.

Meanwhile, the AI developer is grappling with soaring costs to train and run its models, while a major tech rival intensifies competition. The company’s costs are climbing faster than its revenue, adding pressure to its business model.

Both the conglomerate and the AI developer are also backing a $500 billion initiative to build AI data centers, a project that executives say is key to keeping the United States ahead of China in AI technology.