Report: SoftBank has fully invested $40 billion in OpenAI
SoftBank has completed its commitment to invest $40 billion in OpenAI. It was reported that SoftBank transferred the final payment of $22 billion to $22.5 billion last week. Previously, SoftBank had raised $10 billion through a joint investment and directly invested $8 billion in OpenAI. This investment has increased SoftBank's stake in the company to over 10%
On Tuesday, according to CNBC, Japanese investment giant SoftBank has completed its commitment to invest $40 billion in OpenAI. According to insiders, SoftBank transferred the final payment of $22 billion to $22.5 billion last week. Previously, SoftBank had raised $10 billion through a joint investment and directly invested $8 billion in OpenAI.
This investment gives SoftBank a stake of over 10% in the company.
Earlier this year, media reports indicated that SoftBank was finalizing this $40 billion investment in OpenAI, with a pre-investment valuation of $260 billion. At that time, sources stated that the funds would be disbursed in phases over 12 to 24 months. Part of the funds is planned to support the "Stargate" artificial intelligence infrastructure project, a joint venture between OpenAI and Oracle.
In recent months, major companies have been pouring massive amounts of money into building infrastructure to support the fervent demand for AI solutions and the growing need for computing power.
OpenAI has committed to investing over $1.4 trillion in infrastructure over the next few years, including agreements with NVIDIA, AMD, and Broadcom.
For years, SoftBank has been heavily investing in technology and AI companies and was an early investor in NVIDIA. On Monday, the group agreed to spend $4 billion to acquire data center investment firm DigitalBridge to strengthen its position in the AI field.
Last month, SoftBank sold all of its $5.8 billion stake in major AI beneficiary and chipmaker NVIDIA. Insiders revealed that the proceeds from this sale, combined with other funding sources, will be used to support its investment in OpenAI.
Reports indicate that OpenAI is preparing for an IPO, having received billions of dollars in funding from tech giant Microsoft over the years.
Earlier this month, CNBC reported that OpenAI is exploring the possibility of receiving a potential investment of over $10 billion from Amazon. Additionally, Disney made a $1 billion equity investment, allowing users to generate content using characters like Mickey Mouse
