How OpenAI's $300B Valuation Poses a Challenge for Microsoft
SoftBank Group has agreed to head a financing round worth as much as $40 billion for OpenAI. This agreement is expected to increase the valuation of Microsoft's share in the creator of ChatGPT, though it also sets a higher standard for turning OpenAI into a profitable business. The Japanese technology-and-telecoms company said On Tuesday, it announced plans to invest between $20 billion and $30 billion in OpenAI’s profit-oriented spin-off company and distribute an additional $10 billion among participating investors. This agreement assesses OpenAI's worth at approximately $300 billion, which marks a significant increase from the $157 billion valuation recorded in a previous financing round towards the end of last year. Artificial-intelligence company OpenAI is currently structured As a nonprofit organization governed by a board that manages its for-profit operations, it aims to transform into a for-profit public-benefit corporation, according to The Wall Street Jou...