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SoftBank completes $40 billion OpenAI funding with final $22 billion tranche

In this post:

  • SoftBank completed its full $40 billion investment in OpenAI with a final $22 billion payment.
  • Its stake in the company now exceeds 10% at a $260 billion valuation.
  • The funding supports OpenAI’s Stargate project with Oracle and $1.4 trillion in infrastructure deals.

SoftBank has officially wrapped up its monster $40 billion investment in OpenAI, finishing things off with a final payment of around $22 billion, according to a report from CNBC.

Allegedly, the last tranche may have even been closer to $22.5 billion, but either way, it’s done.

The Japanese conglomerate now holds over 10% ownership in the Sam Altman-led AI powerhouse because apparently, a few billion here and there just wasn’t enough, and the final payment was transferred last week, with a deal that’s been in the works since early 2024. SoftBank had initially invested $8 billion directly into the ChatGPT creator, then brought in a crew of co-investors to syndicate another $10 billion.

OpenAI is preparing for IPO and massive infrastructure plans

The SoftBank-OpenAI deal was originally priced at a $260 billion pre-money valuation, and SoftBank was expected to drip out the funds across 12 to 24 months, with some of the capital earmarked for OpenAI’s wild Stargate venture with Oracle and the White House, among others.

Just a few weeks ago, SoftBank dumped its entire $5.8 billion stake in Nvidia. People close to the matter have allegedly said the Nvidia sale, plus other liquidity moves, were aimed at fueling the OpenAI mega-deal. And now that it’s finalized, there’s no ambiguity about where that money went.

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Over the next few years, OpenAI is planning to throw more than $1.4 trillion into infrastructure. That’s trillion with a T. The spending spree includes deep collaborations with Nvidia (again), AMD, and Broadcom. Everyone’s cashing in on the AI boom—and SoftBank wants a front-row seat.

The startup isn’t just collecting checks from Tokyo, either. Microsoft has been backing it for years. Amazon is reportedly exploring a $10 billion investment, and even Disney slid in recently with a $1 billion deal, letting Sora, OpenAI’s video generator, use its roster of characters. Mickey Mouse in AI content? Yep, that’s where this is headed.

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