SoftBank Stock Soars on Potential $500 Million Investment in OpenAI

Shares of SoftBank Group Corp. surged on Tuesday following reports that the Japanese firm might participate in a significant funding round for OpenAI.

This investment could strengthen Masayoshi Son’s position in the competitive AI sector.

According to sources, SoftBank’s Vision Fund is expected to contribute $500 million to OpenAI, which aims to raise $6.5 billion at a $150 billion valuation. Thrive Capital is leading this funding effort, with contributions from major investors including Microsoft. Both OpenAI and SoftBank have not commented on the matter.

SoftBank’s stock increased by 3.4% after experiencing losses in the wake of a leadership election within Japan’s ruling party.

READ MORE:

Michael Saylor Fires Up the Crypto Community With His Latest Tweet

If the funding round proceeds, it would solidify OpenAI’s status as a leading startup in the industry, despite ongoing uncertainties, including the recent announcement of CTO Mira Murati’s departure and potential restructuring plans.

While SoftBank has not previously invested directly in OpenAI, the two companies have collaborated on projects, particularly in developing a large language model in Japan. Earlier this year, SoftBank’s Vision Fund invested in AI rival Perplexity AI, which is valued at $3 billion.

Alexander Stefanov