SoftBank invests $40 billion in OpenAI, becoming the second-largest shareholder

Source: TokenPost Original Title: SoftBank Bets 57 Trillion Won on OpenAI… Second Largest Shareholder After Microsoft Original Link: https://www.tokenpost.kr/news/ai/319710 SoftBank has completed a total investment agreement of $40 billion (approximately 57.6 trillion KRW) in OpenAI, securing an 11% stake, marking a significant step forward in vertically integrating the AI ecosystem. This move again highlights Japan’s largest investment company’s ambitions in the AI industry.

Investment Scale and Capital Allocation

The core of this transaction is SoftBank’s single largest cash injection of $22.5 billion into OpenAI last week. Previously, SoftBank prepaid $7.5 billion last month, with the remaining $17.5 billion supplemented through an investor alliance in April.

This funding will be used for OpenAI’s “Starlink Data Center” project, which aims to ensure 10GW of computing capacity within the United States. The project is scheduled for completion before 2029, involving a cloud computing company and SoftBank’s renewable energy subsidiary SB Energy.

Key Role of Organizational Restructuring

The prerequisite for this investment is OpenAI’s organizational restructuring. OpenAI restructured its for-profit corporate structure under the non-profit organization, transforming the profit-making division into an independent public interest enterprise. Only after this change was completed could SoftBank proceed with the large-scale cash investment.

Changes in Equity Structure

According to reports, SoftBank acquired approximately 11% of OpenAI through this investment, making it the second-largest shareholder after a leading tech company. That tech company currently holds 27.5% of shares, down from 32% before the restructuring.

Funding Sources

To raise these funds, SoftBank divested some assets from its investment portfolio. SoftBank sold $5.8 billion worth of shares in a certain chip company and $4.8 billion worth of shares in a certain mobile communications company, and secured a $11.5 billion loan using shares of a chip design company as collateral.

Continuous Rise in OpenAI Valuation

OpenAI’s enterprise value has increased significantly. When SoftBank initiated its investment in March, OpenAI was valued at $30 billion, but after recent secondary market transactions, it rose to $50 billion. According to related reports, OpenAI is currently negotiating a new round of funding at a valuation of up to $83 billion.

IPO Outlook

OpenAI plans to go public in 2027, with at least $6 billion worth of shares expected to be released into the market at the time of listing. The company’s valuation could reach $1 trillion, representing a huge value appreciation opportunity for SoftBank.

AI Ecosystem Vertical Integration Strategy

SoftBank continues to aggressively expand its AI investment portfolio. Recently, SoftBank agreed to acquire a tech-focused private equity fund company for $4.04 billion. The data center business within the fund’s portfolio is involved in building an AI computing campus project, reflecting SoftBank’s strategic intent to vertically integrate the AI ecosystem into physical infrastructure.