Mackenzie Sigalos (Technology Reporter) 00:00.400
Hey Brian. So SoftBank cutting a $22.5 billion dollar check to OpenAI to round out that $40 billion dollar commitment. Now, to break down that math, SoftBank funded 30 billion of the total round. The balance came from a batch of co-investors. The result, SoftBank now owns more
Mackenzie Sigalos (Technology Reporter) 00:16.600
than 10% of OpenAI at a $260 billion dollar pre-money valuation. The startup nearly value are doubling in value since then. Arguably, the bigger hurdle was more than a year at the negotiating table with Microsoft soft, hashing out new commercial terms, equity, and restructuring
Mackenzie Sigalos (Technology Reporter) 00:33.560
OpenAI into a public benefit corporation to qualify for that final tranche of funding from SoftBank. Now, as for where this latest influx of capital is going, some is earmarked for Stargate, the AI infrastructure joint venture between OpenAI, Oracle, and SoftBank. That is one
Mackenzie Sigalos (Technology Reporter) 00:49.480
piece of a much larger build out. OpenAI, of course, has committed more than $1.4 trillion in infrastructure spending over the next several years, striking deals with Nvidia, AMD, and Broadcom .com. Oracle shares up one in change today on that news. And one last point here,
Mackenzie Sigalos (Technology Reporter) 01:04.840
Brian. What's especially notable is how SoftBank repositioned its entire portfolio to make this happen. Last month, it liquidated its entire Nvidia stake. We are talking nearly $6 billion dollars with sources telling CNBC that sale would specifically help fund this very
Mackenzie Sigalos (Technology Reporter) 01:21.400
investment. And it was only just yesterday that SoftBank agreed to pay $4 billion dollars for Data Center Firm Digital Bridge to deepen its infrastructure push. So, rather than treating NVIDIA as its AI proxy, SoftBank is putting the bet directly on OpenAI as the company lays
Mackenzie Sigalos (Technology Reporter) 01:36.680
the groundwork for an IPO, a very concentrated wager that Sam Altman shop will be the ultimate winner here.