SoftBank Group (SFTBY) has authorized a second installment of $22.5 billion to complete its $30 billion investment in OpenAI (PC:OPAIQ), contingent upon the company’s successful corporate restructuring into a for-profit entity. This restructuring is crucial for attracting further investment and paving the way for a potential public offering. Earlier this year, SoftBank committed $10 billion in April, with an additional $30 billion pending the legal transition by 2025. If OpenAI fails to restructure, SoftBank’s investment may drop to $20 billion. As part of a $41 billion funding round, OpenAI’s valuation has surged to around $500 billion, buoyed by rising revenues from ChatGPT subscriptions. The restructuring to a Public Benefit Corporation will enable investors like SoftBank and Microsoft Corporation (MSFT) to solidify profit-based stakes. Following this news, SFTBY shares rose 4.58%, reflecting strong technical momentum and an overall Strong Buy consensus.
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