SoftBank Group Corp‘s shares saw a notable recovery as news surfaced that the Japanese tech giant might participate in a major funding round for OpenAI, positioning its founder, Masayoshi Son, to further his ambitions in the fast-evolving artificial intelligence space.
Reports indicate that SoftBank’s Vision Fund is preparing to inject $500 million into OpenAI, according to sources familiar with the matter. This comes as OpenAI pursues a $6.5 billion funding round, aiming for a valuation of $150 billion. Thrive Capital is set to lead the investment round, with Microsoft Corp., OpenAI’s largest investor, and others expected to participate. Both SoftBank and OpenAI representatives have so far declined to provide comments on the ongoing negotiations.
In response to this news, SoftBank’s stock rose by 3.4% during Tuesday morning trading, recovering from losses incurred during a broader selloff in Tokyo following a political leadership election.
This latest investment round would reinforce OpenAI’s position as one of the most valuable startups globally. However, it comes at a time of internal changes for the AI leader. Last week, Mira Murati, OpenAI’s Chief Technology Officer, announced her decision to leave, adding to the wave of senior management departures this year. Additionally, OpenAI is reportedly considering a transition to a for-profit structure, as previously highlighted by Bloomberg.
Although SoftBank has not previously invested in OpenAI, the two companies have been collaborating on AI projects. These include efforts to develop a large language model in Japan, further supporting SoftBank’s domestic telecom arm. Masayoshi Son has also stated that he frequently engages with OpenAI’s CEO, Sam Altman, on various initiatives.
Earlier this year, SoftBank’s Vision Fund made a strategic investment in Perplexity AI Inc., an AI search startup that competes with OpenAI, at a $3 billion valuation.