Masayoshi Son levers up $18.5B to back Stargate and invest $40B in OpenAI
Jan 30, 2025
Key Points
- SoftBank CEO Masayoshi Son commits $40 billion to the Stargate AI infrastructure project and OpenAI, borrowing $18.5 billion against his publicly listed equity holdings as collateral.
- Sam Altman secured the commitment during a Tokyo meeting with Son weeks before Trump's ceremonial January announcement of a $500 billion data center initiative that effectively laundered their pre-existing deal.
- Son is leveraging volatile asset positions to fund the bet after infamously liquidating his entire Nvidia stake in 2019 to finance WeWork, a decision that cost him billions in potential AI gains.
Summary
Masayoshi Son is committing $40 billion to the Stargate AI infrastructure project and OpenAI, leveraging up to $18.5 billion in debt against SoftBank's publicly listed assets to finance the bet, according to reporting from The Information cited in the segment.
Sam Altman traveled to Son's mansion in Tokyo earlier this month to secure the commitment. The two finalized the agreement a few weeks before Congress certified Trump's election victory, which Son then used as cover for a broader announcement. When Trump announced a $500 billion data center initiative in early January with Son and Altman present, the two had effectively already locked in their own $40 billion piece of that vision — though Trump's involvement in Stargate itself appears ceremonial rather than substantive.
SoftBank was already an investor in OpenAI before this latest round, so Son's move represents a significant escalation rather than a new entry. The debt financing is the sharper detail here. Son is using the balance sheet value of his publicly listed holdings — likely including his massive Nvidia position and other equity stakes — as collateral to borrow $18.5 billion. That's aggressive leverage tied to asset values that can fluctuate with market conditions.
The move also carries historical irony that hasn't escaped observers. Son owned 5 percent of Nvidia in 2019 and sold his entire stake to fund his disastrous WeWork investment, a decision that has become shorthand for missing the AI boom. Now he's writing nine-figure checks into AI infrastructure while borrowing against the public equities he does hold.