SoftBank is Trying to Complete a $22.5 Billion Fund for OpenAI.

SoftBank's Accelerating Efforts for OpenAI

The Japanese technology giant SoftBank (SFTBY) is taking significant steps to strengthen its competition in the field of artificial intelligence. The company aims to mobilize all its resources by the end of the year to complete its $22.5 billion funding for OpenAI.

Strategic Moves for Financing

To meet its financing target, SoftBank is converting important assets into cash. So far, the company has secured a significant amount by selling Nvidia (NVDA) shares worth $5.8 billion and T-Mobile (TMUS) stakes worth $4.8 billion. In addition, it has made significant cuts in the Vision Fund team.

CEO Masayoshi Son's New Strategies

SoftBank CEO Masayoshi Son is minimizing other investments made under the Vision Fund and has introduced a personal approval requirement for all deals exceeding $50 million to minimize risks. These decisions are reshaping SoftBank's financing strategy.

Credit Options and Other Investments

SoftBank also has the option to tap into a $11.5 billion collateral loan obtained against Arm Holdings (ARM) shares that it has received but not yet utilized. The potential doubling of Arm's shares after its IPO offers SoftBank additional credit opportunities.

Updates on PayPay and DiDi Global

SoftBank is continuing its efforts to open PayPay's IPO, which has been postponed due to the U.S. government shutdown. Initially planned for this month, the IPO is now delayed until the first quarter of 2026, during which more than $20 billion in resources is expected to be generated. Additionally, it is considering plans to sell some of its stakes in DiDi Global (DIDIY).