“Huge OpenAI funding round hinges on shedding nonprofit status”

The Washington Post reports (subscription required) the time is now an issue for resolving the ongoing OpenAI dispute. As described in the article:

ChatGPT-maker OpenAI announced a massive new funding round Monday [March 31, 2025], raising $40 billion in a deal that values the artificial intelligence company at $300 billion — but there’s a catch.

OpenAI must shed its status as a nonprofit and transition itself into a fully for-profit company by the end of 2025 if it wants to unlock all of that money, a person familiar with the deal’s terms said. Japanese conglomerate SoftBank is providing $30 billion of the $40 billion funding but will cut its investment to $20 billion if OpenAI doesn’t complete the restructuring, the person said.

Lloyd Mayer