The company at the heart of the artificial intelligence boom is raising $6.5bn in the form of convertible notes
30 September 2024 - 21:09
byZaheer Kachwala
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Bengaluru — Japanese multinational investment firm SoftBank’s Vision Fund will invest $500m in OpenAI’s latest funding round, The Information reported on Monday, citing a person familiar with the deal.
SoftBank declined to comment, while OpenAI did not immediately respond.
The company at the heart of the artificial intelligence (AI) boom is raising $6.5bn in the form of convertible notes.
Apple reportedly dropped out of plans to participate in the large funding round, which now values the AI company at $150bn before the SoftBank investment.
However, the valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.
The deal represents SoftBank’s first investment in the Sam Altman-led firm, The Information report reads.
OpenAI is working on a plan to restructure its core business into a for-profit corporation that will no longer be controlled by its nonprofit board.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SoftBank to invest $500m in OpenAI, sources say
The company at the heart of the artificial intelligence boom is raising $6.5bn in the form of convertible notes
Bengaluru — Japanese multinational investment firm SoftBank’s Vision Fund will invest $500m in OpenAI’s latest funding round, The Information reported on Monday, citing a person familiar with the deal.
SoftBank declined to comment, while OpenAI did not immediately respond.
The company at the heart of the artificial intelligence (AI) boom is raising $6.5bn in the form of convertible notes.
Apple reportedly dropped out of plans to participate in the large funding round, which now values the AI company at $150bn before the SoftBank investment.
However, the valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.
The deal represents SoftBank’s first investment in the Sam Altman-led firm, The Information report reads.
OpenAI is working on a plan to restructure its core business into a for-profit corporation that will no longer be controlled by its nonprofit board.
Reuters
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