SoftBank to invest as much as $25B into OpenAI to become firms largest backer: report

SoftBank is reportedly in talks to invest as much as $25 billion into OpenAI in a deal that would make it the artificial intelligence firm’s largest backer. The deal, which has not yet been finalized, is for a $15 billion to $25 billion investment into OpenAI, on top of SoftBank’s more than $15 billion commitment to the recently announced Stargate project, the Financial Times earlier reported.President Donald Trump last week unveiled the $500 billion artificial intelligence infrastructure project, which will fund massive data centers in Texas.OpenAI, SoftBank and Oracle jointly launched the venture.SoftBank and OpenAI did not immediately respond to requests for comment.Currently, OpenAI’s largest investor is Microsoft, which has committed nearly $14 billion to date.

OpenAI chief executive Sam Altman has reportedly been looking to chip away at his company’s reliance on Microsoft by developing its own AI chips and partnering with other tech giants like Oracle.Under the Stargate agreement, Microsoft also agreed to relinquish its position as OpenAI’s exclusive cloud service provider.SoftBank could end up spending more than $40 billion on its partnership with OpenAI, according to the report.“The talks are ongoing and the amount that SoftBank could invest in primary equity into OpenAI is a moving target,” one person familiar with the matter told the FT.SoftBank’s equity investment in the AI firm could potentially cover OpenAI’s $15 billion commitment to the Stargate project, according to the FT.In November, OpenAI allowed its employees to sell about $1.5 billion worth of shares in a tender offer to SoftBank, according to a CNBC report. Masayoshi Son, who founded the Japanese tech firm in 1981, was reportedly persistent in asking for a larger stake in the startup, a source then told CNBC.Meanwhile, OpenAI is in the process of transitioning to a for-profit structure, a move that has been met with legal challenges from Tesla founder Elon Musk – who cut...

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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by PaprClips.
Publisher: New York Post

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