SoftBank Group Corp. has finalized its $40 billion investment in OpenAI Group PBC, completing the transaction through a $22.5 billion cash transfer. This latest funding will aid OpenAI’s Starlink data center initiative, which aims to deploy 10 gigawatts of computing capacity in the U.S. by 2029, in collaboration with Oracle Corp. and SB Energy. The funding also follows a significant organizational change at OpenAI, which converted its for-profit arm into a standalone public benefit corporation. SoftBank’s investment gives it an approximately 11% stake in OpenAI, becoming the second-largest investor after Microsoft. This strategy might yield substantial returns, considering OpenAI’s valuation grew to $500 billion from $300 billion post-funding. Additionally, SoftBank is diversifying its AI strategy, including a recent $4.04 billion acquisition of DigitalBridge Group. Future plans may include an IPO for OpenAI around 2027, potentially elevating SoftBank’s investment value significantly.
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