SoftBank's Vision Fund plans to invest $500 million in OpenAI, joining a massive funding round that values the artificial intelligence company at $150 billion, The Information reported Monday. This marks SoftBank's first investment in the ChatGPT developer, adding a new dimension to the highly anticipated $6.5 billion fundraising effort.
The Vision Fund's commitment connects OpenAI CEO Sam Altman with SoftBank CEO Masayoshi Son, a long-time AI enthusiast who has largely stayed on the sidelines of recent generative AI investments. SoftBank's participation comes alongside lead investor Thrive Capital, which is contributing over $1 billion. Other participants include Tiger Global Management, Coatue Management, and Microsoft, OpenAI's largest backer.
This funding round, expected to close this week, stands as one of the largest private deals in history. It comes at a critical time for OpenAI, which has recently faced a wave of senior departures, including Chief Technology Officer Mira Murati and two senior researchers.
SoftBank's involvement is notable given its past focus on AI-adjacent investments. The Japanese conglomerate is the majority owner of chip designer Arm, whose technology plays a crucial role in AI development. Son has previously championed AI's potential, but the Vision Fund's track record has been mixed, with high-profile stumbles like WeWork alongside successes such as DoorDash.
OpenAI plans to restructure as a for-profit benefit corporation, moving away from its current setup as a for-profit subsidiary of a nonprofit. This change may address concerns that previously deterred some investors.
The AI company's ability to attract such significant funding, despite recent leadership changes, underscores the intense interest in generative AI technologies. Still, not everyone is biting. Notably, Apple, which was previously expected to participate, is no longer in talks to invest, according to reports.