SoftBank’s Investment in OpenAI

(Reuters) – Japanese telecom company SoftBank (TYO:9984)’s Vision Fund will invest $500 million in OpenAI’s latest funding round, as reported by The Information on Monday, citing a source familiar with the deal.

SoftBank declined to comment, while OpenAI did not immediately respond.

OpenAI, at the center of the artificial intelligence boom, is raising $6.5 billion in convertible notes, as reported exclusively by Reuters earlier this month.

Apple (NASDAQ:AAPL) reportedly dropped out of the funding round, which currently values the AI startup at $150 billion prior to the SoftBank investment. However, this valuation is contingent on OpenAI’s ability to change its corporate structure and remove a profit cap for investors.

The deal marks SoftBank’s first investment in the Sam Altman-led firm, according to the Information report.

Additionally, Reuters reported on Wednesday that OpenAI is planning to restructure its core business into a for-profit corporation, no longer controlled by its non-profit board.