"SoftBank Completes $40 Billion Investment in OpenAI"

Investment Commitment Fulfilled Since February
SoftBank Secures Over 10% Stake

SoftBank has completed a $40 billion investment commitment in OpenAI, according to a report by CNBC on December 30 (local time), citing multiple sources.

AP Yonhap News

According to CNBC, SoftBank recently paid the remaining balance of its investment commitment to OpenAI, amounting to between $22 billion and $22.5 billion. Previously, in April, SoftBank directly invested $8 billion in OpenAI, and together with co-investors, raised an additional $10 billion, deploying funds in stages. As a result, SoftBank has fulfilled its pledge, made in February to invest $40 billion in OpenAI based on its then-valuation of $260 billion, all within this year.

Since then, OpenAI's valuation has soared, reaching $500 billion in October, and there is speculation that it could be valued at up to $1 trillion if it goes public through an IPO.

With this investment, SoftBank's stake in OpenAI has surpassed 10%, solidifying its position as a key shareholder alongside Microsoft and the nonprofit OpenAI Foundation. In October, OpenAI restructured itself as a Public Benefit Corporation (PBC) that pursues both public interest and profit, setting Microsoft's and the Foundation's stakes at 27% and 26%, respectively.

A portion of SoftBank's investment in OpenAI will be allocated to the "Stargate" project, a massive data center construction initiative in the United States jointly promoted by OpenAI, SoftBank, and Oracle. Just the previous day, SoftBank also announced its acquisition of the asset management firm DigitalBridge, which invests in AI infrastructure, for $4 billion, further expanding its AI investment ecosystem.

To secure funding for its investment in OpenAI, SoftBank sold its entire $5.8 billion stake in Nvidia last month. At the time, Chairman Masayoshi Son stated, "I had no other choice but to sell in order to invest in OpenAI and others," adding, "In fact, I didn't want to sell even a single share." He dismissed concerns about an "AI bubble," saying that if $10 trillion is invested over 10 years, it could be recovered in just half a year.