SoftBank Corp. shares are surging on talk of its potential participation in a funding round for OpenAI, which could boost Masayoshi Son’s position in the AI race. SoftBank’s Vision Fund is planning to invest $500 million in OpenAI, according to a report from The Information, citing a source familiar with the deal. Previous reports from Bloomberg suggested that OpenAI was in talks to raise $6.5 billion from…
SoftBank Corp. shares surged on talk of its potential participation in OpenAI ‘s funding round , which could boost Masayoshi Son’s position in the AI race.
SoftBank’s Vision Fund is planning to invest $500 million in OpenAI , according to a report from The Information, citing a source familiar with the deal. Previous reports from Bloomberg said OpenAI was in talks to raise $6.5 billion from investors, valuing the company at $150 billion . Thrive Capital is expected to lead the funding round, with participation from Microsoft , the company’s largest investor, and other investors. Representatives for OpenAI and SoftBank declined to comment.
SoftBank shares rose 3.4 % Tuesday morning, recovering some of the losses they suffered during a broad sell-off in Tokyo the previous day, following the ruling party leadership election.
OpenAI and a Huge Market Cap Amid Uncertainty
The funding round is expected to cement OpenAI as one of the world’s most valuable startups . But it comes at a time of uncertainty for the company. OpenAI’s chief technology officer, Mira Murati , announced last week that she would be leaving, adding to a wave of executive departures this year. Additionally, OpenAI is considering a restructuring to become a for-profit company, according to previous reports from Bloomberg.
SoftBank’s AI Strategy
SoftBank plans to use its deep pockets for AI chips and AI infrastructure in Japan. While it has not invested in OpenAI before, the two companies have teamed up to help SoftBank’s local communications unit develop a large Japanese language model. Masayoshi Son also noted that he speaks frequently with Sam Altman , OpenAI’s CEO.
And last June, SoftBank’s Vision Fund invested in one of OpenAI’s competitors , an AI research startup called Perplexity AI Inc. , at a $3 billion valuation .
