SoftBank completes $41 billion investment in OpenAI, secures 11% stake

SoftBank completes $41 billion investment in OpenAI, secures 11% stake

GeokHub

GeokHub

Contributing Writer

2 min read
1.0x

Tokyo, Dec 30 — SoftBank Group has completed a $41 billion investment in OpenAI, marking one of the largest private funding rounds ever and giving the Japanese conglomerate an estimated 11% stake in the ChatGPT maker.

Get daily updates from GeokHub with the latest tech news, trends and innovations by subscribing to our Newsletter

SoftBank CEO Masayoshi Son has made an “all-in” bet on artificial intelligence, increasing investment in AI technologies and supporting infrastructure to capitalize on the growing demand for computing power that underpins AI applications.

The latest round includes a $22.5 billion investment from SoftBank, following an earlier $7.5 billion contribution in April, along with an additional $11 billion from syndicated co-investors. OpenAI’s funding round values the company at roughly $300 billion on a post-money basis, though secondary stock sales completed in October have pegged the valuation closer to $500 billion.

This announcement comes shortly after SoftBank revealed a $4 billion acquisition of digital infrastructure investor DigitalBridge Group.

OpenAI, a leading AI developer and creator of ChatGPT, is at the center of the global AI investment boom. Alongside partners such as Oracle, OpenAI is working on “Stargate,” a multi-year initiative to build advanced data centers capable of supporting next-generation AI models.

The move underscores SoftBank’s strategic focus on AI as a major growth area, reflecting the increasing centrality of artificial intelligence in global technology markets.

Share this article

Help others discover this content

Continue Reading

Discover more articles on similar topics that you might find interesting