SoftBank to Invest $500 Million in OpenAI: Report
OpenAI is looking to raise $6.5 billion (roughly Rs. 54,478 crore) in the form of convertible notes.
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Apple has reportedly dropped out of plans to participate in the large funding round
Highlights
- OpenAI was founded in 2015, headquartered in California
- OpenAI is planning to restructure its core business
- Before SoftBank's investment OpenAI is currently valued at $150 billion
Japanese telecom company SoftBank's Vision Fund will invest $500 million (roughly Rs. 4,190 crore) 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 (AI) boom is raising $6.5 billion (roughly Rs. 54,478 crore) in the form of convertible notes, Reuters exclusively reported earlier this month.
- Your ChatGPT Subscription Might May Get More Expensive Soon
Apple reportedly dropped out of plans to participate in the large funding round, which currently values the AI startup at $150 billion (roughly Rs. 12,57,187 crore) 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.
- OpenAI Expects to See $11.6 Billion in Revenue Next Year
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.
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