SoftBank Group is expediting a $22.5 billion funding commitment to OpenAI by the end of the year, primarily through asset sales and margin loans linked to its significant stake in Arm Holdings. CEO Masayoshi Son’s aggressive investment strategy aims to enhance SoftBank’s standing in artificial intelligence. Earlier, the firm divested its entire $5.8 billion stake in Nvidia and $4.8 billion in T-Mobile US to finance this venture, while slowing other Vision Fund activities. Additionally, SoftBank plans to launch an IPO for its payments app PayPay, originally slated for December, now pushed to Q1 next year, expected to surpass $20 billion. OpenAI, in need of funds to scale amid rising competition from Google, recently achieved major valuation milestones, inviting further investment interest. SoftBank’s financial maneuvering reflects the pressures in the AI sector, underscoring the urgent need for funding amid potential market volatility.
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