The 28-year-old missed a large portion of last season due to ankle problems but general manager Bob Myers claims that the risk was worth taking for the franchise.
"We put a lot of money into believing he's going to be healthy," Myers told reporters. "In this business, you're taking risks on players, whether they stay healthy or not. We used all our analysis, all the things we knew, all the information that was at hand with us to make the decision we did.
"Size is a scarcity in the NBA, and we felt like this was somebody we needed to have going forward to be a successful NBA basketball team. He's a big piece of our recent and past success and hopefully future success. So for us, we were willing to take that risk, and we think it's a good one."
Bogut was traded to the Warriors by the Milwaukee Bucks in March 2012.