SoftBank fully executes $40 billion investment in OpenAI [Stocks+]

SoftBank's stake in OpenAI exceeds 10%

Part of the investment will be allocated to the 'Stargate' project

Japan's SoftBank Group has fully executed the $40 billion investment commitment to OpenAI.

CNBC reported on the 30th (local time), citing sources, that SoftBank completed the investment execution last week by transferring the final investment of $22 billion to $22.5 billion. Sources requested anonymity to discuss transaction details.

SoftBank previously invested $8 billion directly in OpenAI, the developer of ChatGPT, and together with co-investors raised an additional $10 billion. This investment is reported to have pushed SoftBank's stake in OpenAI past 10%.

In February, CNBC reported that SoftBank was in the process of finalizing a $40 billion investment in OpenAI. At that time, the funds were scheduled to be paid in installments over 12 to 24 months.

Part of the investment is known to be planned for use in OpenAI's artificial intelligence infrastructure joint project 'Stargate', which involves SoftBank and Oracle.

With the recent expansion of AI application services driving a surge in demand for data centers and network infrastructure, global companies' related investments are rapidly increasing. OpenAI has finalized infrastructure investment plans totaling more than $1.4 trillion over the coming years, including contracts with Nvidia, AMD, and Broadcom.

SoftBank has continued aggressive investments in technology and AI companies and is also known as an early investor in Nvidia. Recently, it agreed to acquire data center investor DigitalBridge for $4 billion to strengthen its AI strategy.

Last month, SoftBank sold all of its Nvidia shares worth $5.8 billion. Sources at the time said that the sale and other cash-raising measures were intended to finance the OpenAI investment.

Meanwhile, OpenAI, which is reported to be preparing for an initial public offering (IPO), has received billions of dollars in investment from Microsoft. Recently, it is also reported to be considering securing more than $10 billion in investment from Amazon.

Also, Disney recently participated in a $1 billion equity investment. As a result, users of OpenAI's video generation model 'Sora' can now create content using Disney's licensed characters such as Mickey Mouse.

New York = Shin-young Park, correspondent nyusos@hankyung.com