OpenAI's shakeup plan gets SoftBank's nod — all eyes now on Microsoft
The SoftBank CFO said OpenAI's planned restructuring with the nonprofit keeping control is something that was expected.
OpenAI said last week that it would restructure in a format that allows its non-profit entity to retain ultimate control, a plan that on Tuesday received the blessing of one of the U.S. artificial intelligence startup's biggest backers — Japanese giant SoftBank.
The endorsement of SoftBank — the first time the company has publicly green lit the plan — is key because the Japanese firm's $30 billion investment in OpenAI announced this year was contingent on a change in structure.
In March, OpenAI closed a $40 billion funding round, receiving $30 billion from SoftBank. But if OpenAI doesn't restructure into a for-profit entity by Dec. 31, SoftBank has previously said it could reduce its portion of the financing to $20 billion.
OpenAI announced this month that it would not fully turn into a for-profit entity after pressure from civic leaders and former employees. Instead, the non-profit arm would retain control of the company, while the limited liability company, which handles all of the business operations, would turn into a public benefit corporation. That means this division will have the ability to generate profit, but will also focus on social good.