SoftBank Finalizes $30 Billion Investment in OpenAI as Valuation Surges
SoftBank Group has approved a second payment of $22.5 billion to complete its $30 billion investment in OpenAI, contingent on the AI firm's restructuring into a for-profit entity. The MOVE could pave the way for a future public offering. Shares of SoftBank rose 4.58% following the announcement.
OpenAI's transition to a Public Benefit Corporation, balancing profit motives with social objectives, requires legal approvals in California and Delaware. This restructuring is critical for investors like SoftBank and Microsoft to scale their stakes. Failure to meet the 2025 deadline would reduce SoftBank's total commitment to $20 billion.