Tech Desk 
Mar 30, 2025
To secure crucial investment for AI advancements, OpenAI is set to transition into a for-profit company by the end of the year in a strategic move aimed at securing a massive $40 billion funding round.
The funding is primarily backed by SoftBank, according to Reuters, citing a source familiar with the matter.
The transition is seen as a crucial step for OpenAI to continue scaling its artificial intelligence models and maintaining its competitive edge in the rapidly evolving AI industry.
This funding deal comes with a critical condition—if OpenAI, which is currently backed by Microsoft, fails to complete its restructuring within the given timeframe, SoftBank could slash the funding round by half, bringing it down to $20bn.
The high stakes attached to this transition put additional pressure on OpenAI to finalize its corporate restructuring sooner than initially planned.
OpenAI had initially planned to complete its transition over the course of two years following its last round of financing.
The urgency of securing funding has expedited this process significantly. OpenAI has consistently maintained that shifting to a for-profit model is essential for attracting the necessary investment to advance its AI research and development at scale.
