SoftBank has fully committed its $40 billion investment to OpenAI, with the final tranche of approximately $22 billion to $22.5 billion reportedly transferred last week. This significant capital infusion solidifies SoftBank’s position as a major shareholder in the artificial intelligence powerhouse, with its stake now exceeding 10%.
The Japanese investment conglomerate had previously syndicated $10 billion and invested an initial $8 billion in the ChatGPT creator. This substantial backing was first reported in February, with SoftBank finalizing a $40 billion investment at a $260 billion pre-money valuation. The funding was structured for payout over a 12- to 24-month period and is earmarked to support OpenAI’s ambitious AI infrastructure projects, including the “Stargate” joint venture with Oracle.
This move underscores the escalating demand and investment in AI infrastructure, as companies worldwide race to develop and deploy cutting-edge AI solutions. OpenAI itself has committed over $1.4 trillion in infrastructure over the coming years, securing agreements with key players in the semiconductor industry such as Nvidia, Advanced Micro Devices, and Broadcom.
SoftBank’s strategic investments in AI are a continuation of its long-standing thesis on technology’s future. The company was an early investor in Nvidia, and its recent $4 billion acquisition of data center investment firm DigitalBridge further signals its commitment to bolstering its AI capabilities. This acquisition aims to strengthen SoftBank’s infrastructure offerings in the rapidly expanding AI sector.
Interestingly, SoftBank recently divested its entire $5.8 billion stake in Nvidia, a decision that, coupled with other cash sources, was understood to support its substantial commitment to OpenAI.
OpenAI, reportedly gearing up for a potential initial public offering, has been a consistent recipient of substantial funding, notably from Microsoft, which has invested billions over the years. The company is also reportedly in discussions with Amazon for an investment exceeding $10 billion. Furthermore, Disney recently joined as a backer, investing $1 billion in an equity deal that grants users access to licensed characters for content generation with OpenAI’s Sora video model.
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