SoftBank has granted executive-level approval for a $22.5 billion investment in OpenAI, one of the biggest players in the artificial intelligence (AI) sector. This amount represents the second tranche of SoftBank’s total $30 billion investment plan.
However, the approval is contingent upon OpenAI implementing a significant change in its corporate structure. It is expected that, following this restructuring, the company will be positioned to pursue an initial public offering (IPO). Through this investment, SoftBank aims not only to act as a financial backer but also to play a strategic role in shaping OpenAI’s future market value.
This investment is part of a larger funding round announced in April, totaling $41 billion. Earlier in April, the Japanese tech giant invested $10 billion in OpenAI and had indicated plans to contribute the second $30 billion tranche by December.
It should be noted that the investment is conditional on OpenAI transitioning to a for-profit corporate structure. If the AI company fails to make this change, SoftBank’s investment could decrease from $22.5 billion to $20 billion. So far, neither party has issued an official statement regarding the investment agreement, particularly the requirement for OpenAI to become a for-profit entity.
