After Apple Reportedly Backed Out, SoftBank Eyes $500M Investment In ChatGPT Parent, Pushing Valuation To $150B

Masayoshi Son-led SoftBank Group Corporation SFTBF has reportedly re-committed to a $500 million investment in ChatGPT-parent OpenAI.

What Happened: This investment forms part of a larger $6.5 billion funding round, catapulting OpenAI’s valuation to a staggering $150 billion, reported Financial Times, citing two people with knowledge of the deal.

The investment will be made through SoftBank’s second Vision Fund, primarily backed by the personal wealth of the company’s leader, Son.

See Also: OpenAI’s SearchGPT Set To Disrupt Google’s Search Empire As Former Engineer Sounds Alarm On Deteriorating User Experience Amid Rising Competition

This move will add SoftBank to the list of existing investors, which includes Thrive Capital and Microsoft Corporation MSFT.

Despite the high-profile departures from OpenAI and potential corporate restructuring, investors remain optimistic about the company’s ability to push the boundaries of AI technology, the report noted.

They are betting on OpenAI’s potential to outperform big tech rivals like Google and Meta, as well as startups such as Anthropic and Mistral.

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Why It Matters: Son has previously referred to himself as an avid user of OpenAI's chat service and has formed a strong connection with the company's CEO, Sam Altman.

He considers Altman to be one of the most influential figures in the world and has said that they communicate daily.

SoftBank already works with OpenAI in Japan, helping local businesses create advanced chatbots.

Last month, Apple design legend Sir Jony Ive also confirmed his collaboration with OpenAI on a new AI hardware project. Earlier, it was reported that Altman and Ive are seeking to secure $1 billion in funding from SoftBank for their new venture.

Meanwhile, Apple has reportedly pulled out of talks to invest in OpenAI's upcoming funding round. The withdrawal occurred at the last minute, just ahead of the funding round's expected closure.

Image via ChatGPT

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.