SoftBank Rushes to Meet $22.5 Billion OpenAI Funding Commitment

SoftBank Group is racing to complete a $22.5 billion funding commitment to OpenAI by year-end, drawing on asset sales, margin loans, and internal cash as Chief Executive Masayoshi Son doubles down on artificial intelligence, sources said.

To raise funds, SoftBank has already sold its entire $5.8 billion stake in Nvidia and offloaded $4.8 billion worth of T-Mobile US shares, while sharply slowing new dealmaking at its Vision Fund. Any investment above $50 million now requires Son’s direct approval, reflecting the firm’s focus on securing capital for OpenAI.

The Japanese conglomerate is also exploring additional funding options, including undrawn margin loans backed by its stake in Arm Holdings, which recently expanded to $11.5 billion. Arm’s share price has tripled since its IPO, providing SoftBank with increased borrowing headroom. As of September 30, SoftBank reported 4.2 trillion yen ($27.16 billion) in parent-level cash.

SoftBank is further preparing for the IPO of its payments app PayPay, now expected in the first quarter of 2026 after delays caused by the recent U.S. government shutdown. The company is also considering monetising part of its holding in Didi Global, which plans to relist in Hong Kong.

OpenAI has yet to receive the remaining funds but expects the full amount by the end of 2025 under the agreement, sources said. SoftBank agreed in April to invest at a $300 billion valuation, a figure that has since surged as OpenAI explores new funding that could push its valuation close to $900 billion.

The funding is critical as OpenAI ramps up spending on AI infrastructure and model development amid intensifying competition from rivals such as Google’s Gemini. OpenAI CEO Sam Altman recently told employees the company is in a “code red” phase, prioritising improvements to ChatGPT while delaying other product launches.

Both SoftBank and OpenAI are investors in Stargate, a proposed $500 billion AI data centre initiative, highlighting the enormous capital demands facing the sector and the growing pressure on even the world’s largest investors to finance the next phase of AI expansion.