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SoftBank Set to Invest $500 Million Investment in OpenAI
SoftBank OpenAI Investment: SoftBank Group, a Japanese investment holding company, makes an investment of $500m in AI startup OpenAI through its Vision Fund. This is according to the Information report.
SoftBank OpenAI Investment To Solidify OpenAI’s Status Quo
The deal would represent the company’s first investment in the AI giant tech company. Additionally, this investment is said to be part of a larger funding round that OpenAI is negotiating, which could total $6.5bn at a valuation of $150bn.
According to Bloomberg, the funding round is slated to be led by Thrive Capital, with participation from Microsoft Corp., the company’s largest investor, and other backers.
This significant funding round would solidify OpenAI’s standing as one of the world’s most valuable startups.
The SoftBank OpenAI funding would bring about a wealth of new opportunities for the AI research company to expand and grow.
SoftBank OpenAI Investment Meets OpenAI’s Leadership Shakeup
OpenAI has been leading the charge in reshaping the artificial intelligence industry thanks to its flagship product ChatGPT, but more and more competitors are entering the scene and the extreme cost associated with training AI systems means more money is required to remain on top.
However, it comes at a time of uncertainty for the AI giant. Mira Murati, OpenAI’s Chief Technology Officer and also a prominent leader within the company, recently announced her departure.
This follows a series of leadership changes within the organization this year.
Additionally, OpenAI is reportedly exploring the possibility of restructuring into a for-profit entity, according to Bloomberg.
Also Read: OpenAI Leadership Shakeup Leaves Mira Murati To exit
SoftBank’s first investment in the AI company
SoftBank OpenAI Investment strategy includes a focus on AI chips and bolstering Japan’s AI infrastructure, although it has not previously invested in OpenAI.
Also, the funding comes as SoftBank founder Masayoshi Son previously informed investors of the company’s strategic shift to “offense mode,” particularly in the realm of AI after experiencing substantial losses over several quarters, Crunchbase reported.
In a related move, SoftBank’s Vision Fund invested in Perplexity AI, a search startup and competitor to OpenAI, at a valuation of $3bn in June this year.
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