SoftBank Approves Final $22.5B for OpenAI, Contingent on Restructuring
SoftBank has approved the remaining $22.5 billion of its planned $30 billion investment in OpenAI, according to The Information, with the approval conditioned on OpenAI completing a corporate restructuring that could enable a future IPO. The funding is part of a wider $41 billion financing package first outlined in April. If the restructuring fails, SoftBank’s total commitment could drop to $20 billion.
What’s new
- SoftBank board signs off on the final $22.5B tranche to complete its $30B OpenAI stake.
- Approval is contingent on OpenAI’s shift to a for‑profit structure aimed at facilitating an eventual IPO.
- The capital forms part of a $41B round first detailed this spring.
- If restructuring stalls, SoftBank’s investment could be reduced to $20B.
Deal structure and context
- In March/April, OpenAI announced up to $40B in new funding led by SoftBank, implying a roughly $300B valuation.
- SoftBank previously disclosed plans to syndicate about $10B of that amount to co‑investors.
- Earlier terms called for an initial $10B payment in mid‑April and a subsequent $30B by year‑end, subject to restructuring.
- The latest board approval addresses the remaining portion of SoftBank’s net commitment.
Why it matters
- Fresh capital strengthens OpenAI’s ability to scale compute, train larger models, and accelerate product releases used by hundreds of millions of users.
- The move signals continued investor conviction in foundation‑model economics despite rising infrastructure costs.
- It also consolidates SoftBank’s position as a leading backer in frontier AI, potentially reshaping competitive dynamics across cloud and software.
What’s next
- All eyes are on OpenAI’s targeted restructuring by the end of 2025—a prerequisite for the full funding to land.
- A successful transition could set the stage for an eventual IPO timeline discussion in 2026 and beyond; failure could scale SoftBank’s total down to $20B.
In short, SoftBank’s green light is a pivotal—but conditional—vote of confidence that could catalyze OpenAI’s next phase of growth, provided the governance overhaul crosses the finish line.