SoftBank can reduce funding to $20 billion if OpenAI fails to fully transition by the deadline. OpenAI must finish its transition to a for-profit company by the end of the year to acquire the full $40 billion funding led by SoftBank it is in the final stages of raising,

In a rapidly evolving technology landscape, OpenAI's pivot to a for-profit model has emerged as a pressing necessity. According to recent reports, the company must transform into a profit-driven entity by the end of the year if it wishes to secure a significant funding round led by SoftBank.

OpenAI, backed by Microsoft, must transition into a for-profit entity by year-end to secure its anticipated $40 billion funding from SoftBank.