SoftBank Approves $22.5 Billion Investment in OpenAI, Contingent on Corporate Restructuring

SoftBank Approves $22.5 Billion Payment To Complete $30 Billion OpenAI Investment - SoftBank Group (OTC:SFTBF), SoftBank Group (OTC:SFTBY)

SoftBank Group Corp. (OTC:SFTBF) (OTC:SFTBY) has approved a second $22.5 billion installment to complete its $30 billion investment in OpenAI, led by CEO Sam Altman. Check out the current price of SFTBY stock here. Board Approval Contingent On Restructuring According to a report by The Information, the board of the Japanese investment group authorized the payment, provided that the AI startup completed a corporate reorganization that would prepare the way for a potential initial public offering (IPO). Sam Altman said in August that the company expects to spend trillions on AI infrastructure and 'has to go public someday'. SoftBank and OpenAI did not immediately respond to Benzinga's request for a comment. $40 Billion Financing Round The funding would complete a $40 billion financing round announced in April. SoftBank initially agreed to provide $10 billion in mid-April and an additional $30 billion in December. For-Profit Structure Required The investment is contingent upon the California-based AI research group transitioning to a for-profit organization by the end of the year. The investment would decrease to $20 billion if the restructuring is unsuccessful. Originally planned for a summer launch, a distinct SoftBank-OpenAI joint venture to provide AI services to Japanese corporate clients has fallen behind schedule. Photo Courtesy: Meir Chaimowitz on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. SFTBFSoftBank Group Corp$151.10-%OverviewSFTBYSoftBank Group Corp$78.764.58%Market News and Data brought to you by Benzinga APIs

Softbank approves remaining $22.5 billion of OpenAI investment, The Information reports

(Reuters) -Softbank has approved a second installment of $22.5 billion to complete its $30 billion investment in OpenAI, the Information reported on Saturday. The Japanese investment group's board has approved the installment as long as the artificial intelligence startup completes a corporate restructuring that would pave the way for an eventual public offering, the Information report said, citing a person with knowledge of the decision. Reuters could not immediately verify the report. (Reporting by Chandni Shah in Bengaluru; editing by Diane Craft)