# SoftBank to invest $500 million in OpenAI, The Information reports
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2024-10-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: SoftBank to Invest $500 Million in OpenAI Funding Round
Meta Description: Learn about SoftBank major investment in OpenAI, driving the artificial intelligence startup valuation to $150 billion. Get the latest updates here.
URL: https://financedigest.com/softbank-to-invest-500-million-in-openai-the-information-reportshtml

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(Reuters) – 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](https://www.financedigest.com/types-of-artificial-intelligence.html "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.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Janane Venkatraman)


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