SoftBank to Invest $1.5 Billion in OpenAI
Date: 2024-11-28 Author: Gabriel Deangelo Categories: BUSINESS
SoftBank, a Japanese multinational investment corporation, announced a $1.5 billion investment in OpenAI, one of the world’s leading artificial intelligence (AI) developers. The deal gives OpenAI employees the opportunity to sell their shares for a profit.
The deal strengthens SoftBank’s position in OpenAI, a long-standing goal of CEO Masayoshi Son. Under the terms, current and former employees who have held shares for at least two years will be able to participate in the sale. The program will end on December 24, at a price of about $210 per share, in line with the company’s latest valuation.
OpenAI, long considered a nonprofit, has dismissed suggestions that the deal is part of a shift in the company’s focus toward profitability.
According to CNBC, the $1.5 billion funding will come from SoftBank Vision Fund 2 (SVF2), which was created in 2019 with $56 billion in investment capital. The fund’s main goal is to support innovative technologies.
SoftBank has previously invested in companies such as Nvidia, Uber, Exscientia, Glean, Perplexity, and Poolside. Now the fund’s focus is on the development of AI and backing market leaders with a capitalization of over $1 billion, the so-called “unicorns.”
SVF2 has already invested in more than 250 companies, and a significant portion of these investments are aimed at advancing artificial intelligence and related technologies.
This deal with OpenAI strengthens SoftBank’s position in the AI field and confirms the company’s commitment to leading the field of advanced technologies.
