Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

OpenAI has $20 billion to win or lose in its race to become a for-profit

Apr 01, 2025 - businessinsider.com
OpenAI has raised up to $40 billion at a $300 billion valuation, with $20 billion of this funding contingent on completing its transition to a for-profit structure. The Japanese conglomerate SoftBank, led by Masayoshi Son, is a major investor, committing $22.5 billion in a second closing set for December, with an additional $7.5 billion from a syndicate. If OpenAI does not complete its restructuring, SoftBank may reduce its funding to $10 billion. The syndicate's participation is also contingent on OpenAI's for-profit conversion.

The first closing will provide OpenAI with $10 billion this month, funded by borrowings from Mizhuho Bank and other institutions, with no strings attached. OpenAI plans to transition to a Delaware Public Benefit Corporation by 2025, aiming to balance profit with positive social impact. This shift is facing a legal challenge from Elon Musk. SoftBank, which first invested in OpenAI last October, is also collaborating on the $500 billion Stargate project and views OpenAI as a key partner in achieving artificial general intelligence.

Key takeaways:

  • OpenAI has raised $40 billion at a $300 billion valuation, with $20 billion contingent on completing a for-profit restructuring.
  • SoftBank is committing $22.5 billion in the second closing, with an additional $7.5 billion from a syndicate, contingent on OpenAI's restructuring.
  • SoftBank will provide $10 billion in the first closing without conditions, financed through borrowings from Mizhuho Bank and other institutions.
  • OpenAI's transition to a Delaware Public Benefit Corporation is facing legal challenges, impacting its ability to secure full funding.
View Full Article

Comments (0)

Be the first to comment!