SoftBank (SOBKY, Financial) just made a blockbuster move, snapping up $1.5 billion worth of OpenAI shares in a tender offer aimed at current and former employees. The deal—priced at $210 per share—offers employees a rare chance to cash out while tech IPOs remain in deep freeze. This isn't just any routine stake; it's a calculated power move by SoftBank's CEO Masayoshi Son, who's been relentless in pushing for a bigger slice of OpenAI after his $500 million buy-in last month. Employees have until December 24 to decide, but the message is clear: SoftBank is doubling down on the generative AI market, with OpenAI as its crown jewel.
For OpenAI, this injection of capital couldn't come at a better time. Sure, the company is raking in a projected $3.7 billion this year, but running AI models at scale and paying top-tier talent don't come cheap—it's bracing for a $5 billion loss by year-end. Yet SoftBank's deep pockets, paired with OpenAI's $4 billion credit line and October's $6.6 billion funding round, ensure the AI pioneer has the runway to stay ahead of rivals like Google (GOOG, Financial) and Anthropic. Meanwhile, the market for generative AI—expected to explode to $1 trillion in a decade—is only heating up, giving this partnership long-term upside.
SoftBank isn't just investing cash; it's staking its reputation on AI domination. This move cements Masayoshi Son's strategy of riding the next wave of innovation, following Vision Fund 2's other AI bets like Glean and Perplexity. For OpenAI, it's not just about liquidity; it's about scaling products like ChatGPT and the upcoming "Operator" assistant to redefine what's possible in AI. The bottom line? This isn't just another deal; it's a clear signal that SoftBank and OpenAI are betting big on reshaping the future of tech.
