SoftBank Pressures OpenAI to Shift to For-Profit Structure Amid $40B Funding

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Mar 28, 2025
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OpenAI is anticipated to secure $40 billion in a funding round, elevating its valuation to $300 billion. However, lead investor SoftBank (SFTBY, Financial) demands OpenAI's transition from a non-profit to a for-profit entity by the end of the year. Failure to restructure will see SoftBank cut their investment by half. This change requires approval from key stakeholders, including Microsoft (MSFT), and will likely face scrutiny from the California attorney general.

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