SoftBank invests $500 million in OpenAI: report
Japanese telecom firm SoftBank’s Vision Fund will invest $500 million (about Rs. 4,190 crore) in OpenAI’s latest funding round, The Information reported on Monday, citing a person familiar with the deal.
SoftBank declined to comment, while OpenAI did not immediately respond.
The company at the center of the artificial intelligence (AI) boom is raising $6.5 billion (about Rs. 54,478 crore) in the form of convertible bonds, Reuters exclusively reported earlier this month.
Apple has reportedly pulled out of plans to participate in the major funding round, which currently values the AI startup at $150 billion (approximately Rs. 12,57,187 crore) before the SoftBank investment.
However, the valuation will depend on whether the ChatGPT maker can change its corporate structure and remove a profit cap for investors.
The deal represents SoftBank’s first investment in the Sam Altman-led company, the Information report said.
Reuters reported on Wednesday that OpenAI is working on a plan to restructure its core business into a for-profit company that will no longer be controlled by the nonprofit’s board.
© Thomson Reuters 2024
