OpenAI must transition into a for-profit entity by the end of 2025 to secure US$40 billion in funding led by SoftBank.

If the restructuring isn’t completed within the year, the funding could be reduced to US$20 billion.

The Wall Street Journal first reported this, stating OpenAI has been under a two-year timeline since its last financing round to complete the transition.

The company says this shift is necessary to fund advancements in its AI models.

OpenAI has not yet commented on the matter.

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