Wednesday, October 8, 2025

Latest

SoftBank Set to Lead Massive $40 Billion Investment in OpenAI

OpenAI is finalizing a landmark $40 billion funding deal spearheaded by SoftBank Group Corp. (TYO: 9984), according to sources familiar with the negotiations, potentially creating the largest private financing round in tech history.

The investment would propel the ChatGPT creator’s valuation to approximately $300 billion, reflecting an extraordinary trajectory for a company that was valued at $157 billion just five months ago when it last raised capital.

The funding structure involves two separate phases, according to Bloomberg which cited people familiar with the matter. An initial round would bring $7.5 billion from SoftBank and $2.5 billion from a group of co-investors. Later this year, a second tranche would deliver an additional $30 billion—with SoftBank contributing $22.5 billion and syndicate partners providing $7.5 billion.

Also read: OpenAI Signs $11.9 Billion Deal with CoreWeave 

TD Cowen analysts noted in a Wednesday research report that the deal coincides with strategic shifts at Microsoft, OpenAI’s major technology partner. Microsoft (Nasdaq: MSFT) has recently modified contractual terms with OpenAI, creating flexibility for the AI firm to utilize cloud services from Microsoft competitors under certain circumstances.

Microsoft has simultaneously overhauled its AI infrastructure strategy. TD Cowen analysts report the tech giant canceled multiple data center expansions across American and European markets that would have added approximately 2 gigawatts of computing capacity.

Despite allocating roughly $80 billion toward AI data centers for the fiscal year ending this June, Microsoft executives have signaled a forthcoming deceleration in infrastructure spending, pivoting from constructing new facilities to outfitting existing data centers with specialized hardware.

Also read: Microsoft Data Center Pullback Sparks Wall Street Jitters Over AI Spending

Investment firms reportedly considering participation in the OpenAI funding include Magnetar Capital, an Illinois-based hedge fund potentially contributing up to $1 billion, alongside Coatue Management, Founders Fund, and Altimeter Capital Management

SoftBank is also separately backing the Stargate Project—a Texas joint venture involving OpenAI, Oracle, and other partners.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Apple-OpenAI Deal Apparently Doesn’t Cost A Thing For Apple

In a move that has captured the tech industry’s attention, Apple (NASDAQ: AAPL) and OpenAI...

Friday, June 14, 2024, 12:59:00 PM

OpenAI Announces New ChatGPT Version for Businesses

OpenAI has unveiled its newest offering since the debut of ChatGPT— an enterprise version of...

Tuesday, August 29, 2023, 06:23:00 AM

Microsoft Made Preparations to Absorb OpenAI’s Departing Staff — Except They Didn’t Leave

Microsoft (Nasdaq: MSFT) was getting ready to receive OpenAI employees who wanted to follow CEO...

Monday, November 27, 2023, 07:37:22 AM

Eyeballing Worldcoin, The OpenAI Chief’s Eyeball-Scanning Crypto Venture

Worldcoin, the eyeball-scanning crypto venture led by Open AI’s Sam Altman, has officially launched its...

Tuesday, July 25, 2023, 02:15:00 PM

AI Giant OpenAI Plans Shift to For-Profit Model, Altman to Receive 7% Stake

OpenAI is planning a significant restructuring of its core business, as first reported by Reuters...

Friday, September 27, 2024, 07:30:00 AM