SoftBank Approves $22.5 Billion Second Payment for OpenAI Investment

TLDR

• SoftBank approved a $22.5 billion second payment to complete its $30 billion investment in OpenAI, contingent on restructuring completion
• The investment is part of a $41 billion funding round that values OpenAI at approximately $500 billion in the private market
• OpenAI must convert to a for-profit Public Benefit Corporation structure by end of 2025 or SoftBank’s investment drops to $20 billion
• OpenAI’s revenue grew from $3.7 billion in 2024 to an annualized $12 billion in mid-2025, driven by ChatGPT subscriptions
• SoftBank is also pursuing a $5 billion loan backed by Arm Holdings shares and initiated a $2.9 billion bond sale to fund AI investments

SoftBank Group has approved a second payment of $22.5 billion to finalize its $30 billion investment in OpenAI. The Japanese conglomerate’s board approved the payment with one condition attached.

OpenAI must complete a corporate restructuring that converts the company to a for-profit structure. The restructuring requires legal approval in California and Delaware.

The deal represents the second phase of SoftBank’s commitment to OpenAI. The company initially agreed to invest $10 billion in April and an additional $30 billion in December.

However, the larger amount depends on OpenAI changing its legal structure by the end of 2025. If the restructuring fails, SoftBank’s total investment would be reduced to $20 billion.

The investment is part of a $41 billion funding round announced earlier this year. OpenAI reached a private market valuation of around $500 billion following an employee share sale in October.

OpenAI’s Financial Growth

OpenAI’s revenue has grown rapidly over the past year. The company’s annualized revenue reached approximately $12 billion in mid-2025.

This represents a jump from $3.7 billion in 2024. The growth comes mainly from ChatGPT subscriptions and expanding enterprise customers.

OpenAI is working to become a Public Benefit Corporation. This structure balances profit goals with social objectives.

The restructuring is critical for investors like SoftBank and Microsoft. It allows them to expand their stakes under a clear profit-based model.

SoftBank’s AI Strategy

Son revealed that OpenAI CEO Sam Altman approached SoftBank about investment before 2019. At that time, Microsoft secured the deal instead.

Microsoft became OpenAI’s exclusive cloud provider. The company lost that exclusive status at the beginning of this year.

SoftBank is now positioned to become one of OpenAI’s largest shareholders. This would place the company alongside Microsoft as a major partner.

The Japanese firm is pursuing additional funding to support its AI investments. Reports indicate SoftBank is in talks for a $5 billion loan backed by shares in Arm Holdings.

SoftBank also initiated a $2.9 billion bond sale. The company returned to overseas bond markets, selling $2 billion in dollar notes and €750 million in euro-denominated notes.

SoftBank shares rose 4.58% on Friday, closing at $78.76. The stock later declined by as much as 4.1% following reports of the loan discussions.

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