OpenAI<\/a>, project rapid growth.<\/p>\nIn April, SoftBank said it would lead a funding round of up to $40 billion in OpenAI, developer of ChatGPT, at a valuation of $300 billion. In October, a source told Reuters SoftBank \u2060was among a consortium of investors acquiring $6.\u200c6 billion worth of shares from OpenAI employees at a yet higher valuation of $500 billion.<\/p>\n
SoftBank’s shares closed at a record 27,315 yen per share in late October, more than quadruple their \u200dprice in early April, although they have pared some gains since, closing at 22,255 yen per share on Monday.<\/p>\n
The share price now appears to be priced in relation to SoftBank’s exposure to OpenAI, after years of tracking shares of Alibaba, Jefferies analyst Atul Goyal \u200bwrote in a note. SoftBank no longer has a meaningful stake in Alibaba.<\/p>\n
While retail investors view SoftBank as a higher risk \u200cand volatility play on artificial intelligence and OpenAI, institutional investors “recognise the momentum but remain cautious about extrapolating OpenAI’s potential,” Goyal wrote.<\/p>\n
‘ARTIFICIAL SUPER INTELLIGENCE’<\/p>\n
SoftBank founder and Chief Executive Masayoshi Son said in June that he was “all in” on OpenAI in a bid to become the biggest platform provider for “artificial super intelligence” within the next 10 years.<\/p>\n
But whether OpenAI and other artificial intelligence firms can generate the profits worthy of such valuations remains to be seen. Losses are \u2060mounting at OpenAI, sources told Reuters in October.<\/p>\n
Separately, in September a \u200bsource told Reuters that SoftBank’s plans to set up a joint venture \u200bwith OpenAI to bring artificial intelligence services to corporate customers in Japan were significantly behind schedule.<\/p>\n
The joint venture eventually launched last week.<\/p>\n
Son has form in both making and losing fortunes.<\/p>\n
He rode the boom and bust of \u200dthe dotcom bubble in 2000, \u2060while SoftBank\u2019s Vision Fund investment vehicles, launched in 2017 and 2019 and totalling over $170 billion in committed capital, have barely broken even since inception.<\/p>\n","protected":false},"excerpt":{"rendered":"By Anton Bridge TOKYO (Reuters) -Technology investor SoftBank Group reports second quarter earnings results on Tuesday in the…\n","protected":false},"author":3,"featured_media":370401,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,178586,749,54569,754,158,67,132,68],"class_list":{"0":"post-370400","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-investment-mistakes","11":"tag-masayoshi-son","12":"tag-share-price","13":"tag-softbank-group","14":"tag-technology","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115528347618316346","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/370400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=370400"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/370400\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/370401"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=370400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=370400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=370400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}