2025-10-02
SoftBank's involvement in OpenAI's $500 billion valuation through a $6.6 billion employee share sale, alongside its existing $40 billion primary funding commitment, suggests the Japanese conglomerate may well consider additional investments as OpenAI's revenue growth accelerates and data centre expansion unfolds.
OpenAI has reached a $500 billion valuation following a secondary share sale that allowed current and former employees to cash out approximately $6.6 billion worth of shares. This represents a significant jump from its previous $300 billion valuation established earlier in 2025.
The transaction makes OpenAI the world's most valuable privately held company, surpassing Elon Musk's SpaceX, which was valued at $456 billion. [1]
Here's how the two most valuable private companies now compare:
| Company | Valuation | Primary Business | Key Investors |
|---|---|---|---|
| OpenAI | $500 billion | AI / ChatGPT | SoftBank, Thrive Capital, Microsoft |
| SpaceX | $456 billion | Space / Rockets | Fidelity, Andreessen Horowitz |
| Difference | +$44 billion | OpenAI leads | Different investor bases |
SoftBank has become one of OpenAI's most significant investors through multiple channels. The Japanese conglomerate participated in the recent secondary sale alongside Thrive Capital, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price.
This adds to SoftBank's substantial $40 billion primary funding commitment announced in March 2025.
| Investment | Amount | Status | Strategic Purpose |
|---|---|---|---|
| OpenAI Primary Round | $40 billion | Committed (partial deployment) | Core AI partnership |
| OpenAI Secondary Sale | Undisclosed portion of $6.6B | Completed Oct 2025 | Employee liquidity support |
| Stargate Project | Infrastructure funding | Ongoing | Data centre development |
| Ampere Computing | $6.5 billion | Pending closure | AI chip capabilities |
The company has also established SB OpenAI Japan, a joint venture that will deploy $3 billion annually on OpenAI solutions across SoftBank group companies.
OpenAI's revenue growth justifies investor confidence. The company generated approximately $4.3 billion in the first half of 2025 alone, representing about 16% more than it earned during the entirety of the previous year. This rapid monetisation of AI capabilities has impressed investors and supports the elevated valuation levels. [2]
The ambitious Stargate infrastructure initiative provides compelling evidence of SoftBank's long-term commitment to OpenAI. Here are the planned data centre locations and SoftBank's involvement:
| Location | Capacity | SoftBank Role | Timeline |
|---|---|---|---|
| Abilene, Texas (Flagship) | 1.5+ gigawatts | Primary funding partner | Operational |
| Shackelford County, Texas | TBD | Funding and development | 2025–2026 |
| Ohio | TBD | Direct investment focus | 2025–2026 |
| Doña Ana County, New Mexico | TBD | Partner role | 2025–2026 |
| Midwest (undisclosed) | TBD | Under evaluation | 2026+ |
| Total Project Goal | 10 gigawatts | $500B total investment | By the end 2025 |
This infrastructure partnership extends beyond equity investment, giving SoftBank exposure to both OpenAI's growth and the underlying real estate and technology assets.
Several compelling reasons suggest SoftBank will increase its OpenAI investment:
Revenue trajectory remains strong: First-half 2025 results show continued acceleration, providing confidence in long-term growth prospects
Infrastructure synergies: The Stargate partnership creates multiple revenue streams beyond pure equity returns
Talent retention success: The secondary sale provides employee liquidity while keeping key personnel, reducing execution risk
Market position: OpenAI's dominant position in generative AI justifies premium valuations
Strategic alignment: Aligns with CEO Masayoshi Son's vision of achieving Artificial Super Intelligence (ASI)
The share sale comes as technology giants compete aggressively for AI talent. Meta Platforms has been offering nine-figure compensation packages to attract leading researchers from OpenAI and other AI laboratories for its new superintelligence division.
This talent war makes employee retention crucial, and secondary sales help provide liquidity without requiring a public offering.
However, SoftBank must weigh several risk factors:
Valuation premium: The $500 billion valuation requires continued rapid growth and successful monetisation
Intensifying competition: Google, Microsoft, and Meta are all investing heavily in competing AI capabilities
Capital requirements: OpenAI's expansion plans will require continued substantial funding
Regulatory uncertainty: AI governance and safety regulations could impact growth trajectories
OpenAI's expansion through the Stargate project aims to reach 10 gigawatts of data centre capacity with $500 billion in total infrastructure investment. This ambitious timeline creates potential opportunities for SoftBank to increase its participation across multiple project phases.
The successful completion of the secondary sale, with strong demand from multiple high-profile investors, demonstrates continued market confidence in OpenAI's prospects. For SoftBank, which has positioned AI as central to its investment thesis, additional OpenAI commitments represent a natural extension of its existing strategy. [3]
Based on current trajectories and strategic alignments, SoftBank appears highly likely to consider additional investments in OpenAI. The company's robust revenue growth, dominant market position, and infrastructure partnership through Stargate all provide compelling reasons for increased commitment.
The secondary sale's success, with participation from sophisticated institutional investors, validates OpenAI's $500 billion valuation and growth trajectory. For SoftBank, which has already committed $40 billion and established operational partnerships, doubling down represents both strategic continuity and portfolio optimisation.
However, the timing and scale of future investments will depend on OpenAI's continued execution, broader AI market development, and SoftBank's own capital allocation priorities. With a $500 billion valuation now established, any additional investments will require careful analysis of risk-adjusted returns and portfolio concentration limits.
The evidence strongly suggests SoftBank will increase its OpenAI investment, though likely through structured approaches that balance opportunity capture with prudent risk management.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.
[1] https://www.cnbc.com/2025/10/02/openai-share-sale-500-billion-valuation.html
[2] https://www.reuters.com/technology/openai-hits-500-billion-valuation-after-share-sale-source-says-2025-10-02/
[3] https://www.chinadailyasia.com/hk/article/621024
