SoftBank intends to invest $500 million in OpenAI, the developer of ChatGPT, as part of a larger funding round, Bloomberg reports. OpenAI aims to raise $6.5 billion, valuing the company at $150 billion.
SoftBank’s Potential Investment in OpenAI
This funding round is expected to be led by Thrive Capital, with participation from Microsoft, OpenAI’s largest investor, along with other investors. Discussions also took place with Nvidia and Apple, but Apple has since withdrawn from negotiations. SoftBank, however, may still participate through its Vision Fund. If this deal is successful, OpenAI will reinforce its status as one of the world’s most valuable startups. Both OpenAI and SoftBank have yet to provide official comments.
OpenAI Faces Internal Challenges
Recently, OpenAI has faced a turbulent period. Last week, the company’s CTO, Mira Murati, announced her departure, adding to a series of top management exits this year. Additionally, Bloomberg reports that OpenAI might undergo restructuring to transition into a fully commercial organization. Originally, the founders presented OpenAI as a non-profit entity focused on creating a positive long-term impact.
SoftBank’s Previous AI Investments
NIX Solutions notes that SoftBank has not previously shown interest in investing in OpenAI. However, its Vision Fund invested in one of OpenAI’s competitors, Perplexity AI, valuing the startup at $3 billion in June. We’ll keep you updated as more information about SoftBank’s potential investment and OpenAI’s future developments emerge.