SoftBank Group is working to secure a $22.5 billion funding commitment for OpenAI by year-end through various strategies, including selling investments and utilizing margin loans from its stake in Arm Holdings. CEO Masayoshi Son’s significant investment in OpenAI, valued at $300 billion initially, aims to enhance SoftBank’s position in AI amid rising competition. To raise funds, SoftBank has divested its $5.8 billion Nvidia stake and $4.8 billion in T-Mobile US. The firm plans to take its payments app, PayPay, public, potentially raising over $20 billion, but has postponed the IPO due to the recent U.S. government shutdown. OpenAI is also under pressure to manage costs as competition increases, with CEO Sam Altman indicating a “code red” status to enhance ChatGPT. SoftBank’s financial maneuvers reflect the broader industry challenges of funding ambitious AI projects while guarding against potential market volatility.
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