SoftBank Completes $40 Billion Investment in OpenAI at $260B Valuation
SoftBank has fully funded its $40 billion investment in OpenAI, taking a stake over 10% at a $260 billion valuation. Learn how Masayoshi Son's strategic pivot from NVIDIA to OpenAI is reshaping the AI industry.
Masayoshi Son's high-stakes gamble has reached its climax. SoftBank has finalized its $40 billion investment commitment to OpenAI, according to sources familiar with the matter. This massive infusion of capital cements the Japanese conglomerate's position as a dominant force in the AI ecosystem, securing a stake of over 10% in the ChatGPT creator.
Sources told CNBC's David Faber that SoftBank wired the final $22 billion to $22.5 billion just last week. The deal values the Sam Altman-led startup at a staggering $260 billion pre-money valuation, marking one of the largest private tech investments in history.
Building the SoftBank OpenAI $40 Billion Investment Legacy
The funding isn't just sitting in a bank account. It's fueling a massive build-out of AI infrastructure. A portion of the capital is earmarked for 'Stargate,' a joint venture between OpenAI, Oracle, and SoftBank designed to meet the insatiable demand for compute power. OpenAI has already committed over $1.4 trillion to infrastructure projects over the next decade.
SoftBank's aggressive expansion also includes the recent $4 billion acquisition of data center firm DigitalBridge. This move underscores Son's strategy to own the entire AI stack, from the physical data centers to the most advanced LLMs.
A Strategic Pivot from NVIDIA to OpenAI
To fund this record-breaking commitment, SoftBank made a significant tactical shift. The firm recently liquidated its entire $5.8 billion stake in NVIDIA. While NVIDIA has been a primary beneficiary of the AI boom, SoftBank appears to be betting that the long-term value lies in the platform and infrastructure layer rather than just the silicon chips.
The competitive landscape is heating up. OpenAI is reportedly exploring a potential $10 billion investment from Amazon, while Disney recently joined as a backer with a $1 billion equity deal centered on licensed content for the Sora video generator.
Investors should note that while the $260B valuation is historic, OpenAI's path to profitability remains capital-intensive, and regulatory hurdles for large-scale AI models are increasing globally.
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