OpenAI must complete its shift to a for-profit structure by year-end to lock in a massive $40 billion investment led by SoftBank, according to media reports quoting a source familiar with the negotiations.
If the AI pioneer fails to restructure in time, SoftBank could slash its commitment to $20 billion—half the original amount.
The accelerated timeline, first reported by The Wall Street Journal, tightens pressure on OpenAI, which initially had a two-year window following its last funding round.
The Microsoft-backed company has long argued that becoming a for-profit entity is essential to fund its cutting-edge AI development.
This high-stakes move highlights the growing financial demands of the AI race, where only deep-pocketed players can compete at the frontier.