US EditionOpenAI must complete for-profit transition by year-end to raise full $40 billion
- Bloomberg reports that OpenAI is nearing completion of a $40 billion funding round led by SoftBank, which would be the largest capital infusion of all time, valuing the company at $300 billion.
- OpenAI, founded in 2015 as a non-profit research lab, created ChatGPT, which emerged onto the scene two years ago, and is now under pressure to restructure into a for-profit entity to secure the full funding amount.
- The funding will support OpenAI's commitment to Stargate, a joint venture with SoftBank and Oracle announced in January by President Donald Trump, that includes building up to 20 AI data centers in the US and has plans for up to $500 billion in investment by 2029.
- The restructuring plan requires approval from Microsoft and the California Attorney General, while Elon Musk, a co-founder of OpenAI, has challenged the conversion in court, and investors will receive convertible notes that will convert into traditional equity after the restructuring.
- To receive the full $40 billion, OpenAI must complete its restructuring by December 31; otherwise, the funding round could be reduced to $30 billion, with SoftBank's contribution potentially decreasing from $30 billion to $20 billion and OpenAI projecting $12.7 billion in revenue for 2025.
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OpenAI has $20 billion to win or lose in its race to become a for-profit
OpenAI must see through its for-profit conversion to secure $10 billion from its latest funding round.Eugene Gologursky/Getty Images for The New York TimesOpenAI has raised $40 billion at a lofty $300 billion valuation.Securing $20 billion of that comes with a catch.The Japanese conglomerate needs to see OpenAI complete its for-profit restructuring first.OpenAI just raised up to $40 billion at a $300 billion valuation — but around $20 billion of…
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OpenAI, one step away from the largest funding round in its history. The company that created ChatGPT will reach a value of $ 300 billion - HotNews.ro
OpenAI is close to receiving a record $40 billion funding round from conglomerate Softbank and other investors, with a first tranche of $7.5 billion coming very soon,…
·Romania
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