SoftBank Fully Funds $40B Investment In OpenAI

SoftBank has finished its full investment of around $40 billion in OpenAI, according to sources quoted by CNBC. The Japanese company sent its final payment of about $22 billion to $22.5 billion last week.

Earlier, SoftBank had already invested $7.5 billion directly in OpenAI and added another $11 billion through co-investors. With this final payment, SoftBank’s total investment now stands at approximately $41 billion, giving it a roughly 11% stake in the company.

In February, CNBC reported that SoftBank was close to completing the deal, valuing OpenAI at around $260 billion before new investments. The funding was planned to be paid over 12 to 24 months, with part of the money meant to support OpenAI’s AI infrastructure projects, including the Stargate joint venture with Oracle and SoftBank.

Many companies are currently investing heavily in building AI infrastructure as demand for artificial intelligence continues to grow. OpenAI alone has committed more than $1.4 trillion over the coming years to strengthen its infrastructure. This includes deals with major chip companies such as Nvidia, AMD, and Broadcom.

SoftBank has a long history of investing in technology and AI firms and was one of the early investors in Nvidia. Recently, SoftBank agreed to buy data center investment firm DigitalBridge for $4 billion to boost its AI strategy.

Last month, SoftBank sold its entire $5.8 billion stake in Nvidia. Sources said the sale, along with other cash sources, helped fund its investment in OpenAI.

OpenAI, which may be preparing for an IPO, has already raised billions from Microsoft over the years. CNBC also reported earlier this month that OpenAI is in talks for a possible $10 billion-plus investment from Amazon.

In addition, Disney recently invested $1 billion in OpenAI. The deal allows users of OpenAI’s video tool Sora to create content using licensed Disney characters, including Mickey Mouse.