TLDR
- OpenAI team members have the chance to sell $1.5 billion in stock to SoftBank via a tender offer, ending December 24, 2023.
- This agreement became possible through SoftBank's CEO, Masayoshi Son, who had previously poured $500 million into OpenAI.
- OpenAI's valuation has skyrocketed past $157 billion following a recent $6.6 billion cash infusion.
- Several cryptocurrencies tied to AI made notable headway in the market after the announcement.
- Tokens, including NEAR Protocol, Internet Computer (ICP), Bittensor (TAO), and RENDER, saw impressive weekly gains.
SoftBank has taken a substantial step forward in the AI domain by offering to buy $1.5 billion of OpenAI shares from its employees.
The deal, announced on Wednesday This setup permits current and previous OpenAI employees to relinquish their stock to the Japanese investment giant, facilitated through a tender arrangement.
The deal, engineered by SoftBank’s Masayoshi Son, allows employees until December 24 to decide on selling their shares. Son, who had invested $500 million previously, shows ongoing interest in OpenAI.
This development surfaces as OpenAI's worth continues to rise, recently hitting a $157 billion valuation after drawing in $6.6 billion from investors, positioning it among the top-valued private tech companies.
The cryptocurrency sector reacted strongly, with AI-related tokens experiencing bumps in their prices following the news.
Near Protocol, one of the prominent AI-focused cryptocurrencies saw a 3% price uptick in 24 hours, valued at $6.64, and had a more vigorous weekly performance with an 18% value increase.
Internet Computer (ICP), an AI-centric cryptocurrency, experienced a 1% daily increase, reaching $11.46. The price swayed between $10.72 and $11.59 in this timeframe, recording a 24% weekly value escalation.
Bittensor (TAO) similarly surged, showing a 3% rise in 24 hours, pushing its value to $558, while its weekly advancement was 20%, indicating lasting growth.
RENDER, despite a short-term dip of 4% over 24 hours down to $7.46, still captivated investor attention, with prices ranging from $7.13 to $7.75 during the period.
SoftBank's tender offer gives OpenAI employees a significant chance to cash out their shares. It's typical for private firms to provide such liquidity opportunities without entering the public market.
People familiar with the transaction highlight the separation of this tender offer from any organizational changes OpenAI might plan. Both OpenAI and SoftBank have refrained from commenting on the specifics.
This investment emerges amid growing interest in AI technologies and their application landscape. OpenAI, known for innovations like ChatGPT, leads the charge in tech advancements.
The crypto market's bounce suggests investors may see connections between AI business milestones and the rise of AI-focused digital currencies. Still, it's crucial to remember that market correlations don't always imply causation.
The deal would position SoftBank as a significant OpenAI shareholder, expanding its tech investment portfolio. SoftBank is renowned for hefty investments in promising tech ventures.
Market data indicates varied reactions among different AI-centered cryptocurrencies, some achieving stronger gains. Weekly performance of these tokens generally trumps their daily market shifts.
