Japan based SoftBank to Funnel USD 500 million in OpenAI

SoftBank's Vision Fund is set to invest $500 million in OpenAI's recent funding cycle, as per The Information's source. The company leading the artificial intelligence revolution is securing $6.5 billion through convertible notes.

It is reported that Apple has pulled out of the big funding round for the artificial intelligence startup, which is now worth $150 billion even before the SoftBank investment. Nevertheless, the assessment will depend on if the ChatGPT developer can disrupt its corporate setup and eliminate a cap on profits for shareholders. According to the Information report, this marks SoftBank's initial investment in the company led by Sam Altman.

Sources indicate that OpenAI is in the process of transforming its primary operations into a profit-making entity that will no longer be under the governance of its non-profit board.

SoftBank Group Corp, based in Minato, Tokyo, is a Japanese investment holding company that primarily invests in technology companies providing goods and services across various markets and industries from internet to automation. SoftBank's Vision Fund, starting with more than $100 billion in funding, is the biggest venture capital fund worldwide that concentrates on technology. Investors in the fund included sovereign wealth funds from Middle Eastern countries.