This investment is said to be part of a larger funding round that OpenAI is negotiating, which could total $6.5bn. Credit: Mehaniq / Shutterstock.

Japanese investment holding company SoftBank Group is reportedly making an investment of $500m in AI startup OpenAI through its Vision Fund, The Information reported citing people familiar with the matter.

This investment is said to be part of a larger funding round that OpenAI is negotiating, which could total $6.5bn at a valuation of $150bn.

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The latest development comes immediately after Apple withdrew from the funding round, as reported by the Wall Street Journal.

The anticipated funding round is expected to be spearheaded by Thrive Capital with contributions from Microsoft, OpenAI’s largest investor, and others.

Microsoft previously invested close to $13bn in OpenAI and is speculated to commit an additional $1bn.

This funding round comes during a period of uncertainty for the company, marked by leadership changes, including the planned departure of OpenAI’s chief technology officer Mira Murati.

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OpenAI, which is currently contemplating a shift to a for-profit model, has seen a series of high-level exits this year.

The proposed restructuring is still being finalised with legal and shareholder consultations, and the timeline for completion is currently uncertain. 

SoftBank‘s investment strategy includes a focus on AI chips and bolstering Japan’s AI infrastructure, although it has not previously invested in OpenAI.

SoftBank and OpenAI collaborated previously on projects, including the development of a Japanese language model by SoftBank’s telecom division.

This funding comes as SoftBank founder Masayoshi Son previously informed investors of the company’s strategic shift to “offence mode,” particularly in the realm of AI after experiencing substantial losses over several quarters, Crunchbase reported.

In a related move, SoftBank’s Vision Fund invested in Perplexity AI, a search startup and competitor to OpenAI, at a valuation of $3bn in June this year.