OpenAI's latest round of financing comes with a $20 billion condition. OpenAI is about to complete a $40 billion financing round. But the problem is: if a key condition is not met, the company could lose half of the financing. According to people familiar with the matter...

OpenAI's Latest Funding Round Comes with a $20 Billion Condition

OpenAI is on the verge of completing a $40 billion funding round. However, the catch is: if it fails to meet a key condition, the company could lose half of the financing. According to people familiar with the matter, in order to secure the full amount of funds, this non-profit organization must successfully restructure into a for-profit company by the end of the year. If it can't, lead investor SoftBank could scale back this funding round to $20 billion. SoftBank is expected to contribute up to $30 billion to this funding round, with the remaining funds to be shared by other investors such as Microsoft. This funding round for OpenAI is divided into two parts. The company will initially receive $10 billion, and if it completes the transformation into a for-profit company by the end of the year, it can receive an additional up to $30 billion. If the restructuring has not taken place by then, the second part of the funds will be reduced to $10 billion.

—— The Wall Street Journal

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