SoftBank to Invest $500 Million in OpenAI
The Takeaway
• SoftBank joins mammoth OpenAI fundraising
• Vision Fund will commit $500 million
• Round values company at $150 billion
SoftBank’s Vision Fund has agreed to invest $500 million in OpenAI’s latest funding round, which values the developer of ChatGPT at $150 billion before the investment, a person familiar with the deal said. The deal represents SoftBank’s first investment in the Sam Altman-led company.
SoftBank joins lead investor Thrive Capital, which is investing over $1 billion in the round. Tiger Global Management, Coatue Management and Microsoft are also participating in the round, The Information reported. United Arab Emirates fund MGX, as well as Dragoneer Investment Group and Nvidia, have also been in talks to invest.
OpenAI is raising $6.5 billion in the round in one of the largest private company financings to date. The company is doing it during a period of tumult. Just last week, Chief Technology Officer Mira Murati announced her resignation. Two other senior researchers later announced their departures. A spokesperson for OpenAI didn’t respond to a request for comment.
SoftBank’s participation shows that despite the turnover there is still demand from large investors to back the company.
SoftBank CEO Masayoshi Son has developed a close relationship with Altman. Altman recently teamed with iPhone designer Jony Ive on a new venture, The Information has reported. Son has been in talks with the pair, though the nature of his involvement is unclear.