SoftBank Invests $500M in OpenAI, Valuing ChatGPT Maker at $150B
Disclosure: We might receive commission on purchases made through links on this page. Learn more.
SoftBank is investing $500 million into OpenAI, the company behind ChatGPT, as part of a larger $6.5 billion funding round. This investment values OpenAI at $150 billion.
Key Points:
- SoftBank’s investment marks its first in OpenAI
- Apple declined to participate in this funding round
- OpenAI is working to remove its profit cap on investors
- The company is transitioning from a non-profit to a for-profit structure
OpenAI’s Business Restructuring:
OpenAI began as a non-profit in 2015 but has been shifting its business model. In 2019, it added a “capped-profit” subsidiary limiting investor returns to 100 times their investment.
The company is now working to become a fully for-profit operation. This change could make CEO Sam Altman $10.5 billion richer.
Sam Altman’s Compensation:
- Previously earned a $65,000 annual salary
- Claimed to have “no equity” in OpenAI during Senate testimony
- Indirectly owned shares through Y Combinator, potentially worth hundreds of millions
ChatGPT Usage:
OpenAI reported that 200 million people use ChatGPT each month, highlighting the company’s growing influence in the AI sector.
I’m founder of BizStack at Cagri Sarigoz LLC and a passionate advocate for entrepreneurs.
With over 14 years in tech, marketing, and AI, including my role as Head of SEO at CitizenShipper and co-founder of TaleBot at Intale AI, I’m dedicated to sharing genuine, useful product insights and tips.
At BizStack, I aim to cut through the digital noise to provide clear, actionable advice.
And more than all else, I’m a father to a (always) little girl and a husband.
Contact me at [email protected] for assistance.
