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SoftBank invest $1.5 billion to OpenAI

Nov 28, 2024 - crypto.news
SoftBank, a multinational investment firm based in Japan, is investing $1.5 billion in OpenAI, a leading artificial intelligence enterprise. This deal allows OpenAI employees to sell their company shares worth $1.5 billion, potentially earning a profit of around $210 per share. The agreement also increases SoftBank's stake in the company, a move that CEO Masayoshi Son has long desired. The offer is open to current and former employees who have held their shares for at least two years.

The funding comes from SoftBank’s Vision Fund 2, which was established in 2019 and has an investment commitment of up to $56 billion. The fund has been used to invest in emerging technologies and companies, including Nvidia, Uber, Exscientia, Glean, Perplexity, and Poolside. The focus of the fund is now on accelerating the use of artificial intelligence and investing in market leaders and companies valued over $1 billion.

Key takeaways:

  • SoftBank is investing $1.5 billion in OpenAI, allowing employees to cash out their company’s share worth the same amount.
  • The investment will increase SoftBank's stake in OpenAI, something CEO Masayoshi Son has been seeking for a long time.
  • The funding for OpenAI comes from SoftBank’s Vision Fund 2, which is focused on investing in emerging technologies and companies.
  • OpenAI, which has been a non-profit organization for a decade, denies that this funding is related to a shift towards becoming a profit-making enterprise.
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