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SoftBank could increase its stake in OpenAI by $1.5 billion

Nov 27, 2024 - qz.com
OpenAI, the artificial intelligence startup, is reportedly seeking an additional $1.5 billion investment from SoftBank. The company is allowing its employees to sell about $1.5 billion in shares to the Japanese investment firm in a tender offer. SoftBank's Vision 2 fund is working on the deal, which would increase its stake in OpenAI. The Japanese firm had previously invested $500 million in OpenAI’s $6.6 billion funding round in October.

OpenAI is reportedly spending more than it's making, with anticipated losses of around $5 billion this year due to expenses such as running its AI models and paying employees. However, it expects $11.6 billion in revenue next year. The company also plans to launch an AI agent, codenamed “Operator,” in January, which can complete tasks on behalf of a user, including coding and booking travel.

Key takeaways:

  • OpenAI is reportedly seeking an additional $1.5 billion investment from SoftBank, allowing employees to sell about $1.5 billion in shares to the Japanese investment firm.
  • SoftBank's Vision 2 fund is working on the deal, which would increase its stake in OpenAI. SoftBank previously invested $500 million in OpenAI’s $6.6 billion funding round.
  • OpenAI is reportedly spending more than it’s making, with an anticipated loss of around $5 billion this year due to expenses such as running its AI models and paying employees.
  • OpenAI plans to launch an AI agent, codenamed “Operator,” in January, which can complete tasks on behalf of a user, including coding and booking travel.
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