SoftBank invest $1.5 billion to OpenAI

OpenAI employees will be allowed to convert $1.5 billion worth of their company’s shares into cash as part of the investment agreement with SoftBank.

SoftBank, a multinational investment company based in Japan, is financing OpenAI, the world’s leading artificial intelligence (AI) startup, with $1.5 billion. This agreement will allow the employee to make a profit by selling his shares.

Thanks to these corporate actions, SoftBank will have a larger stake in the company, something CEO Masayoshi Son has long wanted.

OpenAI employees who hold the stock will have time off before the end of the year, which is December 24th. If employees accept, they could receive earnings of approximately $210 per share, in line with the latest financing.

Current and former employees could participate in the financing, but only those with restrictions and who held the stock for at least two years.

OpenAI, which has been considered a nonprofit for a decade, denies the claim that this funding is related to the directions of the newest company to transition to for-profit venture.

SoftBank financing for emerging technologies

According to CNBC on November 27, $1.5 billion in funding for OpenAI is coming from SoftBank’s Vision Fund 2.

This fund was used specifically to invest in emerging technologies and companies such as Nvidia, Uber, Exscientia, Glean, Perplexity and Poolside. With this investment, the Tokyo-based company will expand its horizons of investing in developing technologies such as artificial intelligence.

SoftBank’s Vision Fund 2 (SVF2) was launched in 2019 and has raised up to $56 billion in investment commitments. Funds were invested in more than 250 companies in 2021, and the majority of the funding consists of new investments.

Now the fund is focused on accelerating the use of artificial intelligence, market leaders and companies valued over $1 billion or bearing the name unicorn.