$40 Billion and Counting: Big Tech Doubles Down on Artificial Intelligence

The deal was finalized last week with a final payment estimated at around $22 billion, though sources familiar with the matter suggest the last tranche may have been closer to $22.5 billion.

The transaction marks the end of a funding process that has been underway since early 2024. SoftBank initially invested $8 billion directly into OpenAI before assembling a group of co-investors to syndicate an additional $10 billion. Following the completion of the deal, the Japanese conglomerate now holds more than a 10% ownership stake in the Sam Altman–led AI company.

Valuation, Funding Structure, and Strategic Motives

The investment values OpenAI at a $260 billion pre-money valuation and was originally structured to be deployed over a period of 12 to 24 months. Portions of the capital are expected to support OpenAI’s expanding infrastructure ambitions, including its Stargate initiative, which involves collaboration with Oracle and U.S. government partners.

In the weeks leading up to the final payment, SoftBank sold its entire $5.8 billion stake in Nvidia. People familiar with the situation said the divestment, along with other liquidity measures, was aimed at freeing up capital to complete the OpenAI investment, removing any remaining uncertainty around the funding source.

OpenAI’s Expansion Plans and Growing Investor Base

Looking ahead, OpenAI is preparing for a potential initial public offering while planning one of the most ambitious infrastructure build-outs in the technology sector. The company is expected to invest more than $1.4 trillion over the coming years to scale computing capacity and AI deployment, working closely with chipmakers such as Nvidia, Advanced Micro Devices, and Broadcom.

OpenAI continues to attract backing from major global corporations. Microsoft remains a long-standing partner, while Amazon is reportedly exploring a $10 billion investment. More recently, Disney joined the roster with a $1 billion deal that allows its intellectual property to be used within OpenAI’s Sora video-generation platform, underscoring how deeply the AI boom is extending across industries.

The deal comes as competition among major technology firms to secure strategic positions in artificial intelligence continues to intensify. Earlier was announced that Meta is making acquisition of a controlling stake in Manus, a move aimed at strengthening Meta’s capabilities in large-scale AI infrastructure and autonomous systems. The move underscored growing demand for specialized AI platforms and compute-focused startups, as Big Tech companies race to lock in talent, technology, and long-term capacity amid rapidly escalating capital requirements across the sector.

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