Following the news about Apple’s withdrawal from plans to invest in OpenAI, SoftBank Group Corp. has made the decision to invest $500 million into the AI company.
Reports reveal that SoftBank’s stock has seen a rebound since the news broke, as SoftBank’s Vision Fund looks to inject $500 million into OpenAI.
OpenAI’s fundraising targets $6.5 billion from various investors, with a projected valuation of $150 billion for OpenAI. Previous reports revealed that Thrive Capital is expected to lead the funding, with backing from Microsoft, one of OpenAI’s key partners.
Neither OpenAI nor SoftBank has made any official statements regarding the specifics of the investment, and both companies have declined to comment on the ongoing negotiations.
This potential funding is SoftBank’s first investment in the AI company led by Sam Altman. The move comes at a sensitive moment for OpenAI, which has been in discussions to restructure its corporate framework.
These restructuring moves aim to transition OpenAI from its current hybrid non-profit model to a more traditional for-profit structure, a change that would remove existing profit caps and attract more investments.
Apple, which was initially expected to be part of this funding round, has reportedly stepped back from participating. This decision has not dampened investor interest, as OpenAI continues to attract noteworthy backing from other major players in the tech industry.
With SoftBank now potentially entering the scene, the stakes in the AI race are higher than ever. The investment strengthens OpenAI’s place in the AI market and also offers SoftBank a stronger foothold in the sector.
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