OpenAI’s current private funding round, valued at US$40 billion, may decrease by US$10 billion if the company does not convert to a for-profit entity by Dec. 31.

SoftBank’s investment, the largest in this round, would drop from US$30 billion to US$20 billion. Microsoft and other investors are expected to keep their US$10 billion commitments.

The funding round now values OpenAI at US$300 billion, including the incoming capital, according to The Wall Street Journal.

The restructuring requires approval from Microsoft and the California Attorney General. Legal challenges, including one from co-founder Elon Musk, complicate the process.

The financing terms include convertible notes that will turn into equity once the restructuring is complete. Part of the funds will support Stargate, a joint venture involving SoftBank, OpenAI, and Oracle.

Additionally, OpenAI has reshaped its leadership, with CEO Sam Altman focusing on research and product development, while chief operating officer Brad Lightcap expands his duties to include overseeing business operations.

The company expects revenue to triple to US$12.7 billion by 2025.

Recent OpenAI developments