SoftBank OpenAI Funding: Inside the $22.5 Billion Stargate Scramble

It is late December 2025, and Masayoshi Son is on the clock. The SoftBank CEO, known for his aggressive and often perilous investment style, is currently maneuvering to pull together $22.5 billion in liquid capital before New Year’s Eve. This isn't just another venture check; it is the lifeblood required to fulfill SoftBank's commitment to OpenAI and the massive $500 billion "Stargate" data center project.

The tech world is watching closely. Unlike the exuberant days of the first Vision Fund, this capital raise feels different—tighter, more desperate, and heavily leveraged against SoftBank's crown jewels. With OpenAI having successfully transitioned to a for-profit entity in October, the trigger for the funding has been pulled, and SoftBank must now pay up.

The Market Verdict: Viewing the Risk Through the Community Lens

Before diving into the complex financial engineering, it is crucial to look at how the tech and investment communities are interpreting this move. This isn't happening in a vacuum; the sentiment surrounding the SoftBank OpenAI funding round is heavy with skepticism and comparisons to past bubbles.

Discussions across tech forums and investment communities highlight a specific anxiety: leverage. Experienced observers are pointing out the danger of SoftBank using its Arm Holdings shares as collateral. The consensus among skepticism-heavy analysts is that SoftBank is effectively "double-dipping" on AI risk. They own Arm (the chip architecture) and are borrowing against it to fund OpenAI (the chip consumer).

• The "Sell Winners" Paradox: A common point of confusion among retail investors is SoftBank’s decision to liquidate its Nvidia stake—the clear winner of the AI boom—earlier this year to fund this private, illiquid bet on OpenAI. The community views this as a classic "Son gamble": trading a sure thing for a potential 100x return that might effectively be zero.

• The WeWork Shadow: You cannot discuss Masayoshi Son’s billions without the ghost of WeWork appearing. The aggressive scrambling for cash has reminded many of the chaotic capital injections that preceded the WeWork collapse, leading to a bearish sentiment on how disciplined this capital deployment will actually be.

Crunching the Numbers: Where is the $22.5 Billion Coming From?

SoftBank isn't writing a check from a checking account. This funding package is a patchwork of asset liquidations and high-stakes loans. Understanding the SoftBank OpenAI funding mechanics reveals just how "all-in" the Japanese giant is.

The Arm Holdings Margin Loan

The most critical—and risky—component is the use of Arm shares. SoftBank owns roughly 90% of the British chip designer. To raise cash without selling the shares (and losing control or upside), SoftBank is using margin loans.

• The Data: Reports indicate SoftBank has about $11.5 billion in untapped margin loan capacity tied to Arm.

• The Risk: If Arm's stock price takes a significant hit due to a tech correction in 2026, SoftBank faces a margin call. This would force them to sell Arm shares at the bottom to repay banks, a "death spiral" scenario that savvy investors are monitoring.

The T-Mobile Piggybank

For years, SoftBank’s stake in T-Mobile US has treated been as a rainy-day fund. That rainy day is here. SoftBank has already offloaded about 11 billion. This is highly liquid, but selling it removes a stable, dividend-paying asset from SoftBank's books to fund a cash-burning AI startup.

The Cash Hoard

As of September, SoftBank held about $27 billion in cash. However, Son is reluctant to drain the corporate treasury entirely, as it leaves the firm vulnerable to credit rating downgrades. The strategy is clear: borrow first, sell assets second, spend cash last.

The Stargate Context: A $500 Billion Ambition

The $22.5 billion is just the entry ticket. It secures SoftBank’s seat at the table for the "Stargate" project, a joint initiative involving OpenAI, Oracle, and MGX (from Abu Dhabi) to build a $500 billion AI infrastructure network in the United States.

Announced in early 2025, Stargate aims to reduce reliance on NVIDIA by building custom compute capacity. However, the sheer scale of the project has drawn criticism. Elon Musk famously tweeted that the consortium "doesn't actually have the money."

The reality is that Stargate AI data center financing depends entirely on the participating partners remaining solvent and liquid. If SoftBank struggles to raise the initial tranche of $22.5 billion, faith in the broader $500 billion roadmap evaporates. This is why Son is personally reviewing every other expense at SoftBank, reportedly gatekeeping any deal over $50 million to preserve capital for Stargate.

The Oracle Connection

Why is the deadline so rigid? Pressure is likely coming from Oracle. Larry Ellison’s company has signed a $300 billion cloud service contract with OpenAI and has been borrowing heavily to build out the physical data centers in places like Texas.

Oracle needs OpenAI to pay its bills. OpenAI needs the SoftBank OpenAI funding to pay Oracle. It is a circular dependency where one weak link breaks the chain. If SoftBank misses the year-end cutoff, it doesn't just hurt OpenAI; it leaves Oracle holding the bag for billions in capital expenditures.

Outlook for 2026

If SoftBank succeeds in wiring the $22.5 billion by December 31, 2025, the immediate crisis is averted, but the pressure shifts. 2026 will need to be the year OpenAI proves it can generate revenue that justifies a valuation approaching $1 trillion (on paper).

For investors, the signal is clear: Watch the price of Arm Holdings. It is no longer just a chip stock; it is the collateral underpinning the largest AI bet in history.

FAQ: Understanding the SoftBank-OpenAI Deal

Why is SoftBank rushing to fund OpenAI now?

The investment was contingent on OpenAI converting to a for-profit entity, which happened in October 2025. SoftBank is now contractually obligated to provide the funds by the end of the year.

What is the "Stargate" project mentioned in reports?

Stargate is a $500 billion infrastructure plan to build massive AI data centers across the US. It is a partnership between OpenAI, SoftBank, Oracle, and MGX to support future AI model training.

Is SoftBank selling Arm to pay for this?

No, they are not selling Arm directly. They are taking out "margin loans" using their Arm shares as collateral. This allows them to get cash now while keeping the shares, but it carries the risk of forced sales if the stock price drops.

Did SoftBank sell Nvidia stock?

Yes. To free up liquidity for this SoftBank OpenAI funding round and the Stargate initiative, Masayoshi Son liquidated SoftBank's stake in Nvidia, betting that OpenAI offers higher future growth potential.

How much does SoftBank owe OpenAI?

SoftBank committed to a total investment package, with the immediate tranche requiring $22.5 billion to be transferred by December 31, 2025.