SoftBank Approves $22.5 Billion Second Payment for OpenAI Investment
**SoftBank Approves $22.5 Billion Second Payment to Complete $30 Billion Investment in OpenAI**
SoftBank Group has approved a second payment of $22.5 billion to finalize its $30 billion investment in OpenAI, contingent on the completion of a corporate restructuring. The Japanese conglomerate’s board attached one key condition: OpenAI must convert its legal structure to a for-profit Public Benefit Corporation by the end of 2025.
The restructuring requires legal approval in California and Delaware and is crucial for SoftBank’s continued investment. If OpenAI fails to complete this change, SoftBank’s total investment will be reduced from $30 billion to $20 billion.
### Part of a $41 Billion Funding Round Valuing OpenAI at $500 Billion
This investment is part of a larger $41 billion funding round announced earlier this year. Following an employee share sale in October, OpenAI reached a private market valuation of approximately $500 billion. SoftBank’s commitment to OpenAI has evolved since April, initially agreeing to invest $10 billion, with a subsequent pledge to increase its stake upon restructuring completion.
### Rapid Revenue Growth Driven by ChatGPT
OpenAI’s financial growth has been remarkable. The company’s annualized revenue surged from $3.7 billion in 2024 to around $12 billion by mid-2025. This impressive increase is largely driven by the expanding number of ChatGPT subscriptions and a growing enterprise customer base.
The move to become a Public Benefit Corporation aims to balance profit objectives with social responsibility — a restructuring critical to investors like SoftBank and Microsoft. This for-profit model will enable them to solidify and potentially expand their stakes in the company.
### SoftBank’s AI Investment Strategy
SoftBank CEO Masayoshi Son has prioritized AI investments, viewing OpenAI as a potential candidate to become “the most valuable company in the world.” Son revealed that OpenAI CEO Sam Altman initially approached SoftBank for investment before 2019, though Microsoft secured the exclusive cloud provider deal at that time. OpenAI lost Microsoft’s exclusivity earlier this year, opening the door for SoftBank to become one of OpenAI’s largest shareholders alongside Microsoft.
To support its AI ambitions, SoftBank is pursuing additional funding avenues. The company is reportedly in talks for a $5 billion loan backed by its shares in Arm Holdings. Additionally, SoftBank has initiated a $2.9 billion bond sale, returning to overseas markets with $2 billion in U.S. dollar notes and €750 million in euro-denominated notes.
### Market Reaction
Following these developments, SoftBank shares initially rose 4.58% on Friday, closing at $78.76. However, the stock later declined by as much as 4.1% amid reports regarding the loan discussions.
—
SoftBank’s commitment to OpenAI underscores its aggressive push into artificial intelligence, positioning it as a significant player in the rapidly evolving tech landscape. The company’s strategic investments and financial maneuvers highlight confidence in OpenAI’s growth trajectory and the broader AI market potential.
https://coincentral.com/softbank-approves-22-5-billion-second-payment-for-openai-investment/
You may also like
Leave a Reply