Home AI OpenAI Achieves Historic $280 Billion Financing Milestone

OpenAI Achieves Historic $280 Billion Financing Milestone

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SoftBank has finalized a substantial $22.5 billion investment in OpenAI, boosting its ownership to 11%. This transaction, completed in the U.S., brings SoftBank’s total investment in OpenAI to $34.7 billion. As part of a larger plan, SoftBank aims to invest $40 billion in OpenAI over the next 12 to 24 months at a valuation of $260 billion. A critical condition for this funding is OpenAI’s successful transition to a for-profit model by year-end. Should this restructuring fail, the investment could drop to $10 billion. Additionally, SoftBank has sold its Nvidia shares for $5.8 billion to fund these efforts. The company is also acquiring DigitalBridge for $4 billion to enhance AI infrastructure. As the competitive landscape of AI evolves, SoftBank’s aggressive strategy positions it to potentially lead in the sector, despite ongoing financial pressures and long-term investment risks.

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