SoftBank Finalizes $41 Billion OpenAI Investment, Acquires 11% Stake

SoftBank has fully completed its substantial investment in OpenAI, finalizing a total commitment of $41 billion and acquiring approximately 11% of the company that created ChatGPT. This move underscores SoftBank's strategic focus on artificial intelligence, spearheaded by key figures Masayoshi Son and Sam Altman.

Investment Details and Strategic Alignment

The final tranche, amounting to between $22 and $22.5 billion, was disbursed at the end of December, concluding a deal announced in the spring. This marks a pivotal moment in the Japanese group's AI strategy.

The final amount exceeds the initial agreements. Approximately $30 billion comes directly from SoftBank's Vision Fund, with an additional $11 billion raised from third-party co-investors. This stands as the largest single-company investment ever made by the conglomerate.

Valuation and Market Impact

The round values OpenAI at a pre-money valuation of $260 billion, confirming the unprecedented acceleration of investments linked to AI.

Leading this venture is SoftBank's founder and chairman, Masayoshi Son, who reaffirmed the strategic alignment with the American company. "We are deeply aligned with OpenAI's vision to ensure that the development of general artificial intelligence benefits all of humanity," he stated.

Sam Altman, CEO of OpenAI, also expressed his enthusiasm, highlighting SoftBank's role in "recognizing the potential of artificial intelligence early on," and noting that its global scale will accelerate the deployment of advanced intelligence.

Global AI Infrastructure Race

The strengthened stake in OpenAI is part of a global race for the infrastructure needed to support the new wave of AI-based applications. OpenAI has already announced infrastructure commitments of over $1.4 trillion in the coming years, with agreements involving chip manufacturers such as Nvidia, Advanced Micro Devices, and Broadcom.

Before investment completion, a valuation of OpenAI was determined. See below:

SoftBank's Broader AI Strategy

In addition to the direct investment, SoftBank has undertaken a series of targeted moves. These include participation in the Stargate project alongside OpenAI and Oracle, and the acquisition of DigitalBridge, a data center specialist, for approximately $4 billion.

Infrastructure Investments

This infrastructure reinforcement can be seen as a natural complement to the AI bet.

The AI sector is constantly seeing new players and new investment. Listed below are some of the major players.

Key Investment Figures

The investment in OpenAI was a large undertaking with a number of different financial and strategic components.

Stargate Project

Softbank is also involved in the Stargate Project. The details of this project are discussed below.

Statements from Leadership

"We are deeply aligned with OpenAI's vision to ensure that the development of general artificial intelligence benefits all of humanity," said Masayoshi Son, Founder and Chairman, SoftBank.

"...capable of recognizing the potential of artificial intelligence early on,” said Sam Altman, CEO of OpenAI.

DigitalBridge Acquisition

Softbank acquired DigitalBridge in an effort to improve its AI capabilities. Key facts about the acquisition are as follows:

Future Infrastructure Commitments

Over the next few years, significant investments will be made into the AI sector. See below for an overview of the investments.