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SoftBank to Invest $500 Million in OpenAI: Report

SoftBank to Invest $500 Million in OpenAI: Report

OpenAI is looking to raise $6.5 billion (roughly Rs. 54,478 crore) in the form of convertible notes.

By Reuters | Updated: 1 October 2024 15:31 IST

SoftBank to Invest $500 Million in OpenAI: Report

Photo Credit: Unsplash/ Levart_Photographer

Apple has reportedly dropped out of plans to participate in the large funding round

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Highlights

OpenAI was founded in 2015, headquartered in California
OpenAI is planning to restructure its core business
Before SoftBank's investment OpenAI is currently valued at $150 billion

Japanese telecom company SoftBank's Vision Fund will invest $500 million (roughly 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 heart of the Artificial Intelligence (AI) boom is raising $6.5 billion (roughly Rs. 54,478 crore) in the form of convertible notes, Reuters exclusively reported earlier this month.

Your ChatGPT Subscription Might May Get More Expensive Soon

Apple reportedly dropped out of plans to participate in the large funding round, which currently values the AI startup at $150 billion (roughly Rs. 12,57,187 crore) before the SoftBank investment.

However, the valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.

The deal represents SoftBank's first investment in the Sam Altman-led firm, the Information report said.

OpenAI Expects to See $11.6 Billion in Revenue Next Year

Reuters reported on Wednesday that OpenAI is working on a plan to restructure its core business into a for-profit corporation that will no longer be controlled by its non-profit board.

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