Now loading...
Japanese technology conglomerate SoftBank has finalized its multibillion-dollar funding pledge to OpenAI, the creator of ChatGPT, according to sources familiar with the deal.
The company transferred the remaining $22 billion to $22.5 billion last week, completing the overall commitment. Earlier, SoftBank had directly put in $7.5 billion and arranged for another $11 billion through partners, bringing the total to $41 billion. This elevates SoftBanks ownership in OpenAI to approximately 11 percent. The firm detailed the investment in a recent announcement.
Reports from February indicated SoftBank was wrapping up a $40 billion infusion into the startup led by Sam Altman, valuing the company at $260 billion before the new funds. The payout was expected to stretch over 12 to 24 months. Part of the money aims to bolster OpenAIs artificial intelligence setup, including the Stargate collaboration with Oracle and SoftBank.
The push reflects a broader surge in corporate spending on AI hardware and computing power. OpenAI alone has locked in more than $1.4 trillion worth of deals for infrastructure in the coming years, partnering with leading semiconductor producers like Nvidia, Advanced Micro Devices and Broadcom.
SoftBank has long focused on high-tech ventures, including an early stake in Nvidia. On Monday, it struck a $4 billion agreement to acquire data center specialist DigitalBridge as part of its AI expansion efforts. Just last month, SoftBank cashed out its full $5.8 billion holding in Nvidia, a key player in the AI boom, with proceeds helping to finance the OpenAI move.
The pioneering AI firm, which is gearing up for a possible stock market debut, has drawn massive backing from industry leaders. Microsoft has poured billions into OpenAI over time. Recent developments include talks for over $10 billion from Amazon. Disney joined as a backer this month with a $1 billion stake, enabling OpenAIs Sora video tool to feature authorized characters like Mickey Mouse.
