The Information announced on Monday, September 30, that SOFTBANK Group’s Vision Fund intends to contribute US$500 million to OpenAI as part of a bigger fundraising round, citing a source familiar with the agreement.
According to a recent report by Bloomberg, OpenAI is in talks to raise US$6.5 billion from investors at a valuation of US$150 billion. Thrive Capital is expected to spearhead the investment round, with support from Microsoft, the company’s biggest sponsor, and other investors.
Also Read: SoftBank Acquires Graphcore Amidst AI Chip Industry Shakeup
SoftBank and OpenAI representatives choose not to respond.
The investment round would solidify OpenAI’s position as one of the most valuable businesses globally, but it also occurs at a time when the well-known artificial intelligence (AI) startup is facing uncertainty.
Chief technical officer of OpenAI and a pivotal member of the team, Mira Murati, made her departure from the company known last week, continuing the exodus of top executives this year.
According to people familiar with the matter, OpenAI is also talking about restructuring to become a for-profit company and offering Chief Executive Officer Sam Altman a 7% equity stake in the company. This would be a significant change as it would be Altman’s first ownership of an artificial intelligence startup.
Also Read: SoftBank Partners with Perplexity AI: Free Perplexity Pro for One Year Starting June 19, 2024
The people, who want to remain anonymous due to the confidentiality of the material, stated that the company is thinking of becoming a public benefit corporation, with the responsibility of making a profit and assisting society. According to one of the individuals, the shift is still being discussed and a timeframe is not yet set. “The nonprofit is core to our mission and will continue to exist,” an OpenAI representative said in a statement, adding that the company is still “focused on building AI that benefits everyone.”
While SoftBank has supported one of OpenAI’s competitors, it has not previously invested in the company. SoftBank’s Vision Fund invested in the AI search startup Perplexity AI in June, valuing the company at US$3 billion.
Also Read: Former Apple Designer Jony Ive Teams Up with OpenAI to Create Groundbreaking AI Mobile Hardware
