SoftBank races to secure the remaining $22.5 billion it owes OpenAI by year‑end
Masayoshi Son is going all out to make sure SoftBank delivers the remaining $22.5 billion it owes OpenAI, and the clock is loud.
Reportedly, the Japanese billionaire wants the full funding locked in by year-end, using whatever cash levers he can pull. Asset sales are already underway. More are coming. Margin loans tied to Arm Holdings are firmly on the table. Nothing here looks optional. This is Masa treating the OpenAI deal like a do‑or‑die move in the global AI race.
The push has already reshaped how SoftBank operates day to day.
Masa has sold the company’s entire $5.8 billion Nvidia stake, cut $4.8 billion from its holding in T-Mobile US, and reduced headcount. Other dealmaking has slowed sharply.
Vision Fund managers now focus almost entirely on OpenAI-related work, according to multiple sources. Any investment above $50 million now needs Masa’s direct sign-off, which insiders say has brought most new deals to a near standstill.
SoftBank pulls cash from assets, loans, and delayed listings
To raise more money, SoftBank is preparing several routes at once. One of the biggest is the long‑planned listing of PayPay, its payments app unit.
The IPO was first expected this month but slipped because of the 43-day U.S. government shutdown, which ended in November. Sources now say the listing should land in the first quarter of next year and could raise more than $20 billion if market conditions cooperate.
The group is also looking to trim its position in Didi Global, China’s largest ride‑hailing company. Didi plans to list shares in Hong Kong after being forced to exit U.S. markets in 2021 following a regulatory crackdown. A source with direct knowledge allegedly said SoftBank is exploring exits tied to that move.
Beyond asset sales, Masa has plenty of financial tools ready. SoftBank expanded its margin loan capacity by $6.5 billion, lifting total unused borrowing power to $11.5 billion. Those loans are backed by its stake in Arm Holdings, whose stock has tripled since its IPO, giving SoftBank more collateral room.
As of September 30, SoftBank also reported 4.2 trillion yen, or $27.16 billion, in parent‑level cash. It still owns roughly 4% of T-Mobile US, a stake valued near $11 billion, according to LSEG data.
Despite cutting back overall activity, SoftBank has kept funding select AI startups, including Sierra and Skild AI, even as most capital flows toward OpenAI.
OpenAI pushes spending as compute demands explode
The money matters because OpenAI needs it fast. The company has not yet received the remaining funds but expects payment by the end of 2025, as outlined in its contract.
Both OpenAI and SoftBank back Stargate, a $500 billion effort to build massive AI data centers for training and inference, which executives say aligns with U.S. goals to stay ahead of China as Donald Trump sits in the White House in 2025.
Big tech firms are spending heavily on similar infrastructure. Meta Platforms and others are pouring cash into chips, power, cooling systems, and servers, often bringing in partners to spread risk.
That spending wave has raised worries about returns and the chance of an AI bubble if revenues fail to match costs.
SoftBank agreed in April to invest up to $30 billion in OpenAI. $10 billion landed immediately. The rest depended on OpenAI completing its shift to a for‑profit structure by year‑end, a change the company finalized in October.
Costs inside OpenAI keep climbing. Training and running models is getting more expensive as competition from Alphabet’s Google intensifies. Sam Altman recently told staff the company had entered a “code red” phase to upgrade ChatGPT, delaying other launches to counter momentum behind Gemini.
In October, Sam said OpenAI aims to build 30 gigawatts of compute for $1.4 trillion, with a long‑term goal of adding 1 gigawatt every week, a scale where each gigawatt now costs over $40 billion.
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