Japanese telecom giant SoftBank is preparing to invest $500 million in OpenAI as part of the AI company’s latest $6.5 billion fundraising round, according to sources familiar with the deal. While SoftBank remained tight-lipped on the matter, OpenAI has yet to provide an official comment.
What’s the Deal with OpenAI?
OpenAI, the company behind ChatGPT, is looking to raise $6.5 billion through convertible notes, as reported by Reuters earlier this month. This funding round values OpenAI at a massive $150 billion—but here’s the kicker: that valuation could shift depending on how the company restructures.
OpenAI is reportedly exploring a significant change to its corporate structure. Right now, the company operates under a unique non-profit model that caps investor profits. If they remove that cap, the valuation could skyrocket, making it even more attractive to big investors like SoftBank.
Apple Bows Out
While SoftBank is jumping in, Apple reportedly dropped out of participating in this round. No official word yet on why, The reasons behind Apple’s exit remain unclear, and it’s uncertain how this will impact its partnership with OpenAI, especially on AI-driven iOS features like Apple Intelligence.
SoftBank’s First Play with OpenAI
This $500 million investment marks SoftBank’s first deal with OpenAI. Known for its Vision Fund, SoftBank has a history of placing bold bets on innovative tech companies, so it’s not surprising they’re now eyeing the AI space.
In a related move, SoftBank’s Vision Fund was reported by bloomberg to have invested in Perplexity AI, a search startup and competitor to OpenAI, at a valuation of $3bn in June this year.
This funding comes as SoftBank founder Masayoshi Son previously informed investors of the company’s strategic shift to “offence mode,” particularly in the realm of AI after experiencing substantial losses over several quarters, Crunchbase reported.
