SoftBank Accelerates $22.5B OpenAI Funding Commitment Amid Cash-Raising Push
SoftBank Group is urgently working to fulfill its $22.5 billion funding commitment to OpenAI by the end of the year, according to multiple sources familiar with the matter. To meet the deadline, the Japanese conglomerate is pursuing a range of financial strategies, including the sale of select assets and potentially drawing on undrawn margin loans secured against its substantial stake in Arm Holdings, the semiconductor design company it acquired in 2016. The funding pledge, announced in late 2023, was part of a broader strategic alliance between SoftBank and OpenAI, aimed at accelerating the development of next-generation artificial intelligence systems. However, with the year-end deadline approaching, SoftBank is under pressure to deliver the full amount, as OpenAI continues to scale its operations and invest heavily in infrastructure and research. The company is reportedly exploring the divestment of some of its non-core assets, including stakes in public and private technology firms, to generate immediate cash. In addition, SoftBank is considering leveraging its already valuable Arm shares as collateral for short-term financing. While the company has not yet activated these credit lines, sources say the option remains viable given Arm’s strong market performance and valuation. SoftBank’s ability to raise the funds underscores both the scale of its commitment and the financial challenges it faces amid a broader tech downturn and declining returns on many of its investments. The move also highlights the growing reliance of AI startups on massive capital injections from deep-pocketed investors. OpenAI has not commented on the timing or structure of the funding disbursement, but sources say the company expects SoftBank to meet its obligation in full by December 31. The successful execution of the plan would mark a major milestone in the partnership and reinforce SoftBank’s position as a key player in the global AI race.
