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SoftBank races to fulfill OpenAI funding commitment by year-end
SoftBank aims to meet its $22.5 billion OpenAI investment deadline using asset sales and borrowing amid rising AI costs, part of a $30 billion commitment made in April.
- SoftBank Group is racing to deliver $22.5 billion to OpenAI by the end of 2025, fulfilling its April investment agreement triggered by OpenAI's for-profit shift in October.
- OpenAI faces rising model training and inference costs amid intensifying competition from Google's Gemini, while Masayoshi Son is betting on AI by slowing Vision Fund deals and requiring approval for investments over $50 million.
- Boosting borrowing capacity, SoftBank Group sold its $5.8 billion Nvidia Corp stake, trimmed $4.8 billion in T-Mobile US shares, expanded margin loans by $6.5 billion to $11.5 billion, and may tap loans backed by Arm Holdings, sources said.
- Masayoshi Son has slowed Vision Fund dealmaking and now requires direct approval for investments above $50 million, while the firm tightened spending and staffing to meet the OpenAI commitment.
- OpenAI is in 'code red' to improve ChatGPT, supporting Stargate, a $500 billion AI data-center buildout, and aiming for 30 gigawatts of capacity at $1.4 trillion, sources said.
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SoftBank rushes to raise $22.5B to meet OpenAI funding deadline as AI compute costs surge - Tech Startups
SoftBank Group is racing against the calendar to assemble the remaining $22.5 billion it owes OpenAI, with people familiar with the matter saying the funds must arrive before year-end. The effort highlights how access to capital now shapes leadership in […] The post SoftBank rushes to raise $22.5B to meet OpenAI funding deadline as AI compute costs surge first appeared on Tech Startups.
SoftBank Scrambles To Raise $22.5 Billion For OpenAI By Year-End, May Tap Arm Stake To Back Debt As AI Spending Pressure Mounts: Report - ARM Holdings (NASDAQ:ARM), Alphabet (NASDAQ:GOOG)
SoftBank is reportedly racing to assemble $22.5 billion in funding for OpenAI by year-end, leaning on asset sales, potential borrowing, and a sweeping pullback in other investments.
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Total News Sources16
Leaning Left1Leaning Right2Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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