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Softbank Completes $40 Billion Investment in OpenAI to Fuel AI Infrastructure and Stargate Project

Softbank has fully completed its $40 billion investment commitment to OpenAI, according to sources familiar with the matter who spoke to CNBC’s David Faber. The Japanese conglomerate made its final installment of between $22 billion and $22.5 billion last week, concluding the multi-phase funding agreement. This follows earlier investments, including a $10 billion syndicated commitment and an initial $8 billion direct investment, bringing the total to the full $40 billion. The funding was announced in February, when CNBC reported that Softbank was finalizing the deal at a $260 billion pre-money valuation for OpenAI. The investment was expected to be disbursed over a 12- to 24-month period, with the final tranche now confirmed. A portion of the capital is being directed toward the Stargate joint venture between OpenAI and Oracle, a major infrastructure initiative aimed at building advanced AI computing capacity. The collaboration is designed to accelerate the development and deployment of next-generation AI systems by combining OpenAI’s models with Oracle’s cloud infrastructure and Softbank’s financial and strategic backing. The completion of this investment underscores Softbank’s deep commitment to positioning itself at the forefront of the AI revolution. As OpenAI continues to push the boundaries of generative AI with products like ChatGPT, the financial support from one of the world’s largest tech investors reinforces the company’s growth trajectory and long-term ambitions. This marks a pivotal moment in the AI industry, highlighting the increasing concentration of capital and strategic partnerships among the world’s most powerful technology players.

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