SoftBank greenlights $22.5B investment in OpenAI
What's the story
SoftBank has approved a second installment of $22.5 billion as part of a $41 billion financing round for OpenAI, according to The Information. The Japanese investment group's board has given the green light for the installment, provided that the artificial intelligence (AI) start-up completes a corporate restructuring, paving the way for an eventual public offering.
Funding details
New investment will finalize $41 billion funding round
The new investment will complete a $41 billion financing round that was announced in April. SoftBank had initially agreed to fund OpenAI with $10 billion as part of this round, with plans for an additional $30 billion contingent on the AI firm transitioning to a for-profit structure by the end of this year.
Information
Restructuring crucial for SoftBank's investment
The restructuring is a major condition for SoftBank's investment. If OpenAI fails to restructure, the funding would be reduced to $20 billion. This clause highlights the importance of corporate restructuring for securing future investments from major players like SoftBank in the rapidly evolving AI industry.