SoftBank Group Corp. is set to invest $500 million in OpenAI following Apple’s decision to withdraw from plans to participate in the AI company’s fundraising efforts. The news has caused a rebound in SoftBank’s stock, as its Vision Fund plans to inject a substantial sum into the AI powerhouse.
OpenAI is currently targeting a fundraising goal of $6.5 billion, with its projected valuation reaching $150 billion. Thrive Capital is expected to lead the funding round, alongside continued support from Microsoft, a key partner of OpenAI.
While both SoftBank and OpenAI have yet to release official statements regarding the deal, reports suggest this would mark SoftBank’s first significant investment in OpenAI, led by Sam Altman. The investment comes at a crucial time for OpenAI, which is considering a shift from its hybrid non-profit structure to a more traditional for-profit model. This restructuring aims to remove existing profit caps, enabling the company to attract larger investments.
Despite Apple stepping back, investor interest in OpenAI remains robust, with major players like Microsoft and now SoftBank stepping in to strengthen OpenAI’s position in the fast-evolving AI industry. This move enhances SoftBank’s presence in the AI sector and boosts OpenAI’s ability to scale its innovative technologies.
