OpenAI must complete for-profit transition by year-end to raise full $40 billion
The startup has said its transition to a for-profit entity is required to secure the capital it needs to develop the best AI models
OpenAI must transition to a for-profit company by the end of the year to secure the full $40 billion funding led by SoftBank it is in the final stages of raising, a person familiar with the matter said on Friday.
SoftBank, can pare back the size of the funding round to $20 billion if Microsoft-backed, OpenAI fails to restructure into a for-profit company by the end of the year
The Wall Street Journal was the first to report the news earlier in the day.
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This would mark an accelerated deadline for OpenAI to pull off its complicated transition. It was under a two-year deadline from its last round of financing with investors.
The startup has said its transition to a for-profit entity is required to secure the capital it needs to develop the best AI models.
OpenAI did not immediately respond to a Reuters request for comment.
