SoftBank has finalized its $40 billion investment commitment in OpenAI, sources told CNBC’s David Faber.
The Japanese investment giant sent between $22 billion and $22.5 billion last week, according to people familiar with the matter, who asked to remain anonymous in order to discuss details of the transaction.
SoftBank previously syndicated $10 billion and invested $8 billion in creator ChatGPT. This investment brings SoftBank’s stake in the company above 10%.
CNBC reported in February that the company was finalizing a $40 billion investment in the Sam Altman-led startup, at a pre-money valuation of $260 billion.
At the time, Faber announced that the funding would be disbursed over a period of 12 to 24 months. Funds were planned to support the Stargate joint venture, OpenAI’s artificial intelligence infrastructure, with Oracle and SoftBank.
Companies have spent a lot of money in recent months to develop infrastructure that can meet the frenzy for AI solutions and growing computing needs.
OpenAI has made more than $1.4 trillion in infrastructure commitments over the next few years, including deals with chipmakers. Nvidia, Advanced microdevices And Broadcom.
Over the years, SoftBank has bet big on tech and AI companies and was an early investor in chipmaking giant Nvidia. On Monday, the conglomerate agreed to pay $4 billion for a data center investment company. Digital Bridge to strengthen its push in AI.
Last month, SoftBank liquidated its entire $5.8 billion stake in the leading AI beneficiary and chipmaker. Nvidia.
Another source close to the decision to sell the stake told CNBC at the time that the sale, combined with other sources of liquidity, would support its investment in OpenAI.
The startup, which is reportedly preparing for an IPO, has received billions of dollars in funding over the years from a tech giant. Microsoft.
Earlier this month, CNBC reported that OpenAI was exploring the potential for an investment of more than $10 billion from Amazon.
Disney is also a recent backer, following a billion-dollar equity investment deal that allows users of OpenAI’s video generator, Sora, to generate content with licensed characters such as Mickey Mouse.
