SoftBank Scrambles to Meet $22.5 Billion OpenAI Funding Pledge
GeokHub
Contributing Writer
Summary
- SoftBank is rushing to complete a $22.5 billion funding commitment to OpenAI by the end of 2025
- The group has sold stakes in Nvidia and T-Mobile and may tap margin loans backed by Arm shares
- SoftBank has slowed other investments to prioritise OpenAI
- OpenAI needs the funds to support massive AI data centre expansion amid intensifying competition
NEW YORK / TOKYO / SAN FRANCISCO — Dec 19, 2025SoftBank Group is racing to fulfil a $22.5 billion funding commitment to OpenAI by the end of the year, drawing on asset sales, borrowing capacity and internal cash reserves as founder Masayoshi Son doubles down on artificial intelligence, according to people familiar with the matter.
The investment marks one of Son’s boldest bets yet, as the Japanese billionaire seeks to reposition SoftBank at the centre of the global AI race. To raise capital, the group has already sold its entire stake in AI chipmaker Nvidia, reduced its holding in T-Mobile US, and curtailed staffing and dealmaking across its Vision Fund operations.
Sources said any new SoftBank investment exceeding $50 million now requires Son’s personal approval, underscoring how sharply the company has narrowed its focus on OpenAI.
Asset Sales and Borrowing Options
SoftBank is also exploring multiple funding avenues to close the deal, including drawing on undrawn margin loans secured against its stake in Arm Holdings. The company recently expanded that margin loan capacity to $11.5 billion, benefiting from Arm’s share price surge since its IPO.
As of late September, SoftBank reported parent-level cash of about 4.2 trillion yen ($27 billion) and still owns roughly 4% of T-Mobile US, a stake valued at around $11 billion.
The conglomerate is also seeking to monetise other holdings, including shares in Chinese ride-hailing firm Didi Global, as it attempts to free up additional capital.
PayPay IPO Delayed
SoftBank’s plans to list its payments app unit, PayPay, have been pushed into the first quarter of 2026 after delays linked to a prolonged U.S. government shutdown, sources said. The IPO is expected to raise more than $20 billion and could provide another major cash injection once completed.
Why the OpenAI Funding Matters
Although OpenAI has already received an initial $10 billion tranche from SoftBank earlier this year, the remaining funding is tied to contractual deadlines extending through the end of 2025.
The AI company needs the capital to support the rapidly rising costs of training and running advanced models, as competition intensifies from rivals including Google. OpenAI executives have described the current phase as critical, with internal resources being redirected to strengthen core products such as ChatGPT.
Both SoftBank and OpenAI are also backers of Stargate, a massive initiative aimed at building large-scale AI data centres viewed as strategically important to maintaining U.S. leadership in artificial intelligence.
High Stakes in the AI Arms Race
The funding push highlights the strain facing even the world’s largest investors as the AI boom demands unprecedented levels of capital. Global technology firms are committing hundreds of billions of dollars to infrastructure for chips, power and cooling, fuelling concerns among analysts about whether returns will justify the scale of spending.
For SoftBank, however, the gamble could pay off handsomely. Since agreeing to invest at a $300 billion valuation earlier this year, OpenAI’s estimated valuation has reportedly surged, potentially giving SoftBank a significant paper gain once the transaction is fully completed.
SoftBank declined to comment on the funding plans.
