SoftBank is investing $1.5 billion in OpenAI, allowing employees to sell their shares for around $210 each. This move increases SoftBank’s stake in OpenAI as it transitions towards a profit-driven model.
SoftBank, a Japanese multinational investment company, is providing $1.5 billion in funding to OpenAI, the world’s most prominent artificial intelligence (AI) enterprise. The employee would be able to generate a profit by disposing of their shareholding under this agreement.
SoftBank’s CEO, Masayoshi Son, has been advocating for a significant increase in its ownership stake in the company for an extended period of time. This would be achieved through these corporate actions.
Before the year’s conclusion, on December 24, the employees of OpenAI who possess the share would have additional leisure. If the employees consent, they would receive approximately $210 per share, which is consistent with the most recent funding.
The funding was open to both current and former employees, provided that they had been granted restrictions and had held the share for a minimum of two years.
OpenAI, which has been classified as a non-profit organization for a decade, is denying the claim that this funding is associated with the newest company’s objectives, which will transition to a profit-making enterprise.
SoftBank’s investment in emerging technologies
SoftBank’s Vision Fund 2 provided $1.5 billion in funding for OpenAI, as reported by CNBC on November 27.
The purpose of this funding was to invest in emerging technology and companies, such as Uber, Nvidia, Exscientia, Glean, Perplexity, and Poolside. This investment will enable the Tokyo-based corporation to broaden its investment horizons in emerging technologies, such as artificial intelligence.
SoftBank’s Vision Fund 2 (SVF2) was established in 2019 and has amassed an investment commitment of up to $56 billion. The majority of the funding in 2021 was a new investment, with over 250 companies receiving funding.
Currently, the funding is directed toward the acceleration of the implementation of artificial intelligence, market champions, and companies that have either named a unicorn or have a market capitalization exceeding $1 billion.
