OpenAI has 2 years to transition to a for-profit company. Here are 6 key things it will need to do in that time.
Business InsiderOCT 2 2024
OpenAI to Complete For-Profit Transition by Year-End to Raise Full $40 Billion
Above: SoftBank Group CEO Masayoshi Son (left) and OpenAI CEO Sam Altman (right) at the "Transforming Business through AI" event in Tokyo, Japan, on Feb. 3, 2025. Image copyright: Tomohiro Ohsumi/Stringer/Getty Images News via Getty Images
The Spin
Narrative A
SoftBank's decision to tie its investment to OpenAI’s transition to a for-profit structure is financially sound. Without this shift, OpenAI will struggle to secure the funding needed to continue developing the cutting-edge AI models that have made it a household name.
Narrative B
SoftBank’s push to fast-track OpenAI’s shift to a for-profit model risks intensifying an already contentious process. OpenAI was already grappling with the problems posed by a two-year transition amid Elon Musk’s lawsuit and Microsoft negotiations — forcing it to happen in one year could plunge the company into chaos.