[ 2025-12-30 21:03:49 ] | AUTHOR: Tanmay@Fourslash | CATEGORY: BUSINESS
TITLE: SoftBank Completes $40 Billion Investment in OpenAI
// SoftBank Group has completed a $40 billion investment in OpenAI, solidifying its position in the artificial intelligence sector and contributing to the company's elevated valuation.
- • SoftBank Group completed a $40 billion investment in OpenAI, marking one of the largest private funding rounds in history.
- • The investment values OpenAI at approximately $500 billion following a recent secondary stock sale, up from an initial $300 billion post-money valuation.
- • OpenAI is advancing AI infrastructure through the 'Stargate' project with partners including Oracle, backed by major investors like SoftBank.
SoftBank Finalizes Major AI Investment
SoftBank Group has completed its pledged $40 billion investment in OpenAI, a source familiar with the matter said on Tuesday. The deal represents one of the largest private funding rounds on record and underscores the Japanese conglomerate's deepening commitment to artificial intelligence under founder Masayoshi Son.
The investment comes at a time when AI has emerged as the dominant force in global technology markets, fueling unprecedented capital inflows from major corporations and reshaping investor priorities. SoftBank, known for building one of the world's largest private technology investment portfolios, has prioritized AI and supporting infrastructure, including data centers.
Neither SoftBank nor OpenAI immediately responded to requests for comment.
Investment Details and Structure
The commitment originated in March when SoftBank agreed to invest up to $40 billion in OpenAI's for-profit subsidiary. The funding was structured as a mix of direct capital from SoftBank and syndicated co-investments from other backers. Initially, the deal valued OpenAI at around $300 billion on a post-money basis.
However, a secondary stock sale completed in October pushed the company's valuation to approximately $500 billion, according to data from PitchBook. The source indicated that SoftBank had already syndicated $10 billion and directly invested $8 billion prior to this final tranche. The conglomerate then transferred the remaining $22 billion to $22.5 billion to close the round.
This completion follows initial reporting by CNBC earlier in the day. SoftBank's move aligns with its broader strategy to capitalize on AI's transformative potential, building on previous high-profile bets in the sector.
OpenAI's Role in AI Expansion
OpenAI, the creator of ChatGPT, has become a cornerstone of the industry's AI investment surge. The company is collaborating with Oracle and other stakeholders on a ambitious multi-year initiative called 'Stargate.' This project aims to develop extensive data-center infrastructure to support advanced AI models.
Major investors, including SoftBank, are providing backing for Stargate, which is positioned to address the growing computational demands of next-generation AI technologies. The effort highlights the escalating costs and scale required for AI development, with global tech giants pouring resources into hardware and software innovations.
Broader Market Context
The influx of capital into AI reflects a year of heightened activity across the technology landscape. Investments in AI startups and infrastructure have accelerated, driven by expectations of long-term economic and societal impacts. SoftBank's involvement in OpenAI exemplifies how established players are positioning themselves to lead in this space.
As AI continues to influence markets, from stock valuations to regulatory discussions, deals like this one signal sustained momentum. The completed investment not only bolsters OpenAI's resources but also reinforces SoftBank's influence in shaping the future of artificial intelligence.
Tanmay is the founder of Fourslash, an AI-first research studio pioneering intelligent solutions for complex problems. A former tech journalist turned content marketing expert, he specializes in crypto, AI, blockchain, and emerging technologies.