SoftBank Nears $40B OpenAI Investment, Valuation Could Reach $260B

GuruFocus.com02-07

SoftBank (SFTBY) is reportedly close to finalizing a $40 billion investment in OpenAI as part of a new funding round, CNBC reported on Friday.

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The deal would value the Microsoft-backed (NASDAQ:MSFT) generative AI company at $260 billion. The investment is expected to be distributed over 12 to 24 months in multiple tranches, with co-investors potentially contributing up to $10 billion of the total.

Neither SoftBank nor OpenAI responded to requests for comment. Earlier reports suggested SoftBank's investment could range between $15 billion and $25 billion, but OpenAI is also in discussions with other investors for additional funding that could push its valuation to $340 billion, more than double the $157 billion it reached after securing $6.6 billion in October 2024.

SoftBank and OpenAI have deepened ties recently, notably partnering on the $500 billion AI-focused Stargate Project, announced last month.

This article first appeared on GuruFocus.
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