SoftBank to Invest Up to €37 Billion in OpenAI
The Japanese conglomerate aims to enhance its artificial intelligence capabilities through a significant investment in the U.S. tech firm.
SoftBank, the Japanese technology conglomerate, has announced plans to invest up to ¥5.98 trillion (approximately €37 billion) in the U.S.-based company OpenAI, as stated in a company announcement.
Of this total, €6.1 billion is expected to come from external sources.
The investment is part of SoftBank's strategy to enhance its artificial intelligence (AI) business, with OpenAI recognized as a pivotal partner in the pursuit of artificial general intelligence (AGI).
AGI refers to the development of AI systems that can understand, learn, and apply knowledge across a broad spectrum of tasks at a level comparable to that of a human.
This substantial investment follows a meeting in Tokyo two months prior between SoftBank executives and OpenAI leadership, including Sam Altman, where they announced a collaborative AI project.
The agreement involves a strategic partnership aimed at establishing a joint venture called SB OpenAI Japan, along with the development of a generative AI initiative named 'Cristal,' designed to create advanced solutions for companies, including SoftBank itself.
OpenAI has indicated that with SoftBank's investment and additional funding, it is completing its latest funding round with a valuation of approximately $300 billion (€277 billion), nearly double its previous valuation recorded in October.
This funding round has been identified as the largest to date, based on data from research firm PitchBook.
According to CEO Sam Altman, 'Hundreds of millions of people use ChatGPT every week.
This investment helps us push boundaries and make AI more useful in everyday life.' Additionally, OpenAI plans to finalize a corporate restructuring by the end of the year, which would grant its for-profit division independence from the nonprofit organization that currently governs it.
The announcement coincides with President Donald Trump's recent commitment to invest up to $500 billion in the private sector to develop AI infrastructure.
This initiative will involve collaborations between OpenAI, SoftBank, and Oracle, starting with an investment in a data center in Texas and with future plans to expand into other states.
Of this total, €6.1 billion is expected to come from external sources.
The investment is part of SoftBank's strategy to enhance its artificial intelligence (AI) business, with OpenAI recognized as a pivotal partner in the pursuit of artificial general intelligence (AGI).
AGI refers to the development of AI systems that can understand, learn, and apply knowledge across a broad spectrum of tasks at a level comparable to that of a human.
This substantial investment follows a meeting in Tokyo two months prior between SoftBank executives and OpenAI leadership, including Sam Altman, where they announced a collaborative AI project.
The agreement involves a strategic partnership aimed at establishing a joint venture called SB OpenAI Japan, along with the development of a generative AI initiative named 'Cristal,' designed to create advanced solutions for companies, including SoftBank itself.
OpenAI has indicated that with SoftBank's investment and additional funding, it is completing its latest funding round with a valuation of approximately $300 billion (€277 billion), nearly double its previous valuation recorded in October.
This funding round has been identified as the largest to date, based on data from research firm PitchBook.
According to CEO Sam Altman, 'Hundreds of millions of people use ChatGPT every week.
This investment helps us push boundaries and make AI more useful in everyday life.' Additionally, OpenAI plans to finalize a corporate restructuring by the end of the year, which would grant its for-profit division independence from the nonprofit organization that currently governs it.
The announcement coincides with President Donald Trump's recent commitment to invest up to $500 billion in the private sector to develop AI infrastructure.
This initiative will involve collaborations between OpenAI, SoftBank, and Oracle, starting with an investment in a data center in Texas and with future plans to expand into other states.
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