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Report: Half of OpenAI’s Pending $40 Billion Funding Round Depends on Restructuring | PYMNTS.com

Apr 01, 2025 - pymnts.com
OpenAI is reportedly in the process of finalizing a $40 billion funding round, contingent upon its restructuring into an independent for-profit company by the end of the year. If the restructuring is not completed, the funding could be reduced by $20 billion, according to The Wall Street Journal, or by $10 billion, as reported by CNBC. The restructuring requires approval from Microsoft, OpenAI's largest shareholder, and the California attorney general. Additionally, Elon Musk has filed a lawsuit to block the restructuring. OpenAI has informed investors that if the restructuring is not completed within two years, it will return their money.

The funding round would value OpenAI at $300 billion, nearly double its previous valuation of $157 billion. The company reportedly generated $3.7 billion in revenue in 2024 and expects to reach $29.4 billion in sales by 2026. OpenAI plans to transform its for-profit arm into a Delaware Public Benefit Corporation to secure the necessary capital for developing artificial general intelligence (AGI). The company emphasizes the need for significant compute resources and capital to advance its mission of scaling large language models towards AGI.

Key takeaways:

  • OpenAI is working on restructuring into an independent for-profit company to secure a $40 billion funding round.
  • The funding round could be reduced by $20 billion if the restructuring is not completed by the end of the year, according to The Wall Street Journal.
  • OpenAI's restructuring requires approval from Microsoft and the California attorney general, and faces a lawsuit from Elon Musk.
  • OpenAI plans to transform its for-profit arm into a Delaware Public Benefit Corporation to raise capital for developing artificial general intelligence.
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