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SoftBank to invest $500 million in OpenAI, The Information reports

Published 09/30/2024, 09:44 AM
Updated 09/30/2024, 10:25 AM
© Reuters. OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) - Japanese telecom company SoftBank (TYO:9984)'s Vision Fund will invest $500 million 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 boom is raising $6.5 billion in the form of convertible notes, Reuters exclusively reported earlier this month.

Apple (NASDAQ:AAPL) reportedly dropped out of plans to participate in the large funding round, which currently values the artificial intelligence startup at $150 billion 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.

© Reuters. OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

The deal represents SoftBank's first investment in the Sam Altman-led firm, the Information report said.

Reuters reported on Wednesday that OpenAI is working on a plan to restructure its core business into a for-profit corporation that will no longer be controlled by its non-profit board.

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