OpenAI is on the brink of securing a massive $40 billion funding round led by SoftBank. But there’s a catch—this deal depends on OpenAI transitioning to a for-profit company by the end of the year. If that doesn’t happen, the funding might drop to $20 billion. SoftBank has already committed $30 billion directly and plans to gather another $10 billion from investors like Microsoft. Initially, OpenAI will receive $10 billion.
In addition to this financial boost, SoftBank and OpenAI have forged a strategic partnership. They’re pledging to invest $3 billion each year into OpenAI’s tech. This collaboration includes the formation of ‘SB OpenAI Japan,’ a joint venture aimed at distributing OpenAI’s enterprise technology throughout Japan. SoftBank will gain access to OpenAI’s suite of tools, like ChatGPT Enterprise and custom models, under the new ‘Cristal Intelligence’ brand.
During a recent livestream, SoftBank’s founder, Masayoshi Son, emphasized the potential development of Artificial General Intelligence (AGI) within the next decade. He pointed out that big corporations are likely to be the first to adopt AGI due to the high costs involved. This partnership also extends to Arm, a British chip designer owned by SoftBank, which plans to use OpenAI’s tools to boost productivity.
Recent reports suggest that SoftBank might invest between $15 and $25 billion in OpenAI, positioning itself alongside Microsoft as a major stakeholder. This investment is part of a broader financing strategy that could value OpenAI at $300 billion, with some funds potentially supporting the Stargate project.
