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

Japanese telecom company SoftBank’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 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.

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.