SoftBank Completes $40B OpenAI Investment With Final $22.5B Payment
The Japanese conglomerate has finalized its massive funding commitment to the AI company, with the latest tranche bringing its stake to approximately 11% and positioning it as OpenAI's second-largest shareholder.
SoftBank Group Corp. has wrapped up its $40 billion investment in OpenAI Group PBC, which the company had announced back in March. According to CNBC sources, the Japanese conglomerate sealed the transaction last week by delivering $22.5 billion in fresh capital. The remaining $17.5 billion came through two separate earlier payments, with SoftBank contributing $7.5 billion in the previous month and an investor group providing the balance in April.
A portion of the capital will support OpenAI's Starlink data center initiative, launched at the beginning of the year with the goal of establishing 10 gigawatts of computing capacity across the United States by 2029. Oracle Corp. and SB Energy, a renewable energy subsidiary of SoftBank, are backing this undertaking.
The completion of SoftBank's $22.5 billion payment was tied to significant changes in how OpenAI operates. Previously structured as a nonprofit entity with a for-profit subsidiary, the company underwent a restructuring that converted the for-profit component into an independent public benefit corporation.
To fund this round, SoftBank liquidated portions of its broader investment holdings. The conglomerate divested a $5.8 billion position in Nvidia Corp. and disposed of $4.8 billion in T-Mobile US Inc. shares. The company also secured an $11.5 billion loan using its Arm Holdings plc shares as collateral.
According to reporting from Nikkei Asia, SoftBank now holds roughly 11% of OpenAI, making it the second-largest investor in the company. Microsoft Corp. maintains the top position with a 27.5% stake, down from a prior 32% holding before OpenAI's structural transformation.
Potential Returns on the Horizon
SoftBank's investment could yield substantial gains. When SoftBank approved the $40 billion funding round in March, OpenAI carried a $300 billion valuation. A $6.6 billion secondary transaction in recent weeks elevated the valuation to $500 billion. The Wall Street Journal has reported that OpenAI is currently in talks for an additional funding round at an even higher price point.
Reuters sources indicate that OpenAI may pursue an initial public offering following this next capital raise. Such a listing, potentially scheduled for 2027, could enable SoftBank to offload shares at substantially elevated prices. The company is anticipated to issue at least $60 billion in stock, with valuations potentially reaching $1 trillion.
Broader AI Portfolio Strategy
SoftBank's commitment to artificial intelligence extends across multiple segments of the sector. This week, the conglomerate announced a $4.04 billion acquisition of DigitalBridge Group Inc., a technology-focused private equity firm. Among DigitalBridge's holdings is Vantage Data Centers Management Company LLC, which is collaborating with OpenAI on the development of a Stargate data center facility in Wisconsin.
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