SoftBank Group Corp.’s Vision Fund is preparing to invest $500 million in OpenAI as part of a larger funding effort, according to a report by The Information on September 30, citing an individual familiar with the deal.
OpenAI is reportedly in discussions to raise $6.5 billion from various investors, with a valuation of $150 billion, as previously reported by Bloomberg. Thrive Capital is expected to lead the funding round, with Microsoft Corp.—OpenAI’s largest investor—also participating, alongside other investors.
Both OpenAI and SoftBank declined to comment on the matter.
This significant funding round would solidify OpenAI’s standing as one of the world’s most valuable startups. However, it comes at a time of uncertainty for the AI giant. Mira Murati, OpenAI’s Chief Technology Officer and 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.
While SoftBank has not previously invested in OpenAI, it has backed a competitor. In June, SoftBank’s Vision Fund invested in AI search startup Perplexity AI, valuing the company at $3 billion.
OpenAI u-turn towards for-profit
Meanwhile, on September 23, OpenAI, the artificial intelligence startup, announced that one of its official accounts on the social media platform X (previously Twitter) had been “compromised” by an unauthorized individual, according to a report from Bloomberg. The company revealed that its @OpenAINewsroom account was hacked, with the intruder posting messages that encouraged users to click on links to a cryptocurrency token falsely associated with the startup.
Additionally, OpenAI is discussing giving Chief Executive Officer Sam Altman a 7% equity stake in the company and restructuring to become a for-profit business, people familiar with the matter said, a major shift that would mark the first time Altman is granted ownership in the artificial intelligence startup.
The company is considering becoming a public benefit corporation, tasked with turning a profit and also helping society, said the people, who asked not to be identified because the information is private. The transition is still under discussion and a timeline has not been determined, one of the people said. In a statement, a spokesperson said OpenAI remains “focused on building AI that benefits everyone,” adding, “the nonprofit is core to our mission and will continue to exist.”
(With Inputs from Bloomberg)
