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SoftBank Completes Its Final $10 Billion OpenAI Investment
SoftBank Group completed the third and final $10 billion tranche of its follow-on investment in OpenAI, bringing its total commitment to $30 billion. The company says its cumulative OpenAI investment is now $64.6 billion, and it has cancele
AI.info Team · Written with AI ·
A $10 billion payment closes the $30 billion commitment
SoftBank Group completed the final $10 billion installment of its follow-on investment in OpenAI on October 1, finishing a $30 billion commitment announced in February. The Japanese conglomerate made the payment through SoftBank Vision Fund 2, according to its announcement of the closing.
The deal lifts SoftBank’s cumulative investment in OpenAI to $64.6 billion and gives it an ownership interest of approximately 13%, the company said. The new $10 billion tranche was the third of three equal installments, following payments in April and July. SoftBank’s February agreement set out a $730 billion pre-money valuation for the investment and specified that the securities to be acquired were preferred shares, automatically convertible into OpenAI common shares upon an IPO or related listing transaction.
Before the new commitment, SoftBank said it had invested $34.6 billion in OpenAI through Vision Fund 2 since September 2024. Its February announcement described the additional investment as participation in OpenAI’s fundraising round, with the $30 billion to be invested in three $10 billion tranches. That announcement projected cumulative investment of $64.6 billion and approximately 13% ownership upon completion; the October closing release says those figures have now been reached.
Bond proceeds funded the final tranche
SoftBank said it funded the closing with proceeds from foreign-currency senior notes announced on September 24. The financing announcement set out about $11.1 billion in notes: $10 billion in U.S.-dollar debt and €1 billion in euro debt. SoftBank identified the OpenAI payment as a use for the proceeds, alongside general corporate purposes.
The dollar notes carry annual interest rates of 8.625%, 9.25% and 9.75%, with maturities in 2030, 2032 and 2034. The euro notes mature in 2030 and 2032 and carry rates of 7.125% and 8%, respectively. Interest payments on both sets of notes are scheduled semiannually. The terms show that the notes were not designated solely for OpenAI: the company listed general corporate purposes as an additional use of proceeds.
The February agreement said the investment was expected to be financed initially through bridge loans and other financing arrangements from major financial institutions, then replaced over time using existing assets and other financing measures. The September notes announcement specified that their proceeds would fund the final OpenAI payment and general corporate purposes, while SoftBank also expected to cancel the remaining undrawn capacity on its bridge facility.
SoftBank ends its bridge-facility borrowing
The closing also resolves the remaining capacity under a $40 billion bridge facility arranged in March. SoftBank canceled the undrawn final $10 billion effective September 30 and said all borrowings under the facility had been repaid, leaving no undrawn commitments.
On September 9, SoftBank said $30 billion had been drawn under the facility and announced plans to repay its entire outstanding balance of $25.9 billion on September 15. The October 1 release confirms that the early repayment took place and that the remaining $10 billion of undrawn capacity was canceled.
SoftBank’s stated rationale and accounting treatment
When it announced the follow-on investment in February, SoftBank said the decision was intended to further support OpenAI’s continued growth. Masayoshi Son, SoftBank Group chairman and CEO, said:
“Through this additional investment, we will accelerate OpenAI’s research and ecosystem expansion, while advancing our own ASI strategy.”
SoftBank’s February announcement also said its financial policies on loan-to-value and cash position would remain unchanged. It described an LTV target below 25% under normal market conditions, with an upper threshold of 35% in emergencies, and said it maintains cash sufficient to cover bond redemptions for at least two years.
For its consolidated financial statements, SoftBank said the OpenAI shares would be treated as financial assets measured at fair value through profit or loss. The company said it would assess their fair value quarterly and recognize changes as investment gains or losses. With the final tranche completed, the announced follow-on investment is finished, and SoftBank reports no remaining undrawn commitments under the associated bridge facility.