SoftBank Approves $22.5 Billion Investment to Complete OpenAI Funding Round
SoftBank Group Corp. has approved a $22.5 billion installment to complete its planned $30 billion investment in OpenAI, according to The Information. The funding depends on OpenAI finishing a corporate restructuring that would allow it to operate as a public benefit corporation and eventually pursue an initial public offering.
The new installment forms part of a $41 billion financing round led by SoftBank. The round values OpenAI at $260 billion before the financing. SoftBank previously invested $7.5 billion in the first phase of this round, while other investors such as Dragoneer Investment Management and Thrive Capital contributed an additional $11 billion.
OpenAI expects the capital to help cover its growing compute costs, projected at $16 billion this year and $40 billion next year. The company has also set aside up to $100 billion through 2030 to fund research and infrastructure. At the end of last year, OpenAI held $7.6 billion in cash and forecasted losses exceeding $8 billion for 2025.
The restructuring requires approvals from Microsoft, OpenAI’s largest commercial partner, and from regulators in Delaware and California. Once complete, it will convert existing profit rights into traditional shares and maintain the nonprofit’s control over the for-profit unit, with an equity stake valued at around $100 billion.
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