On January 21, 2025, U.S. President Donald Trump made comments on AI infrastructure in the Roosevelt Room of the White House in Washington, Openai CEO Sam Altman spoke next to SoftBank CEO Masayoshi's son.
Carlos Barria | Reuters
Openai said last week that it will reorganize in a format that allows its nonprofit entities to retain final control, and the plan received blessings from Japan's giant SoftBank on Tuesday, one of the biggest backers of one of the U.S. artificial intelligence startups.
Recognition of SoftBank, which for the first time the company openly ignited the program, is key, as the Japanese company's $30 billion investment in OpenAI announced this year, depending on structural changes.
In March, Openai acquired $40 billion in funding rounds and received $30 billion in funding from SoftBank. But if Openai did not reorganize into a for-profit entity by December 31, SoftBank previously said it could reduce a portion of its financing to $20 billion.
Openai announced this month that it will not become a for-profit entity under pressure from citizen leaders and former employees. Instead, the nonprofit sector will retain control over the company, and the limited liability company that handles all business operations will become a public welfare company. This means that the sector will have the ability to generate profits, but will also focus on social interests.
AI startups initially wanted to remove controls from nonprofits, and the program has been criticized from many in the technology field, including competitors and original OpenAI co-founder Elon Musk.
Since the nonprofit will retain control and abandon the original restructuring plan, it is not clear whether the major investors in Openai are joining.
But "Nothing really changed," SoftBank finance chief Yoshimitsu Goto said at a graduation press conference Tuesday.
According to a company translator whose company reviews in Japanese, "I don't think it's the wrong direction...that's what we expect."
He reiterated that Openai needs to complete its restructuring by the end of this year.
There may still be stumbling blocks along the way. MicrosoftOne of Openai’s largest investors has not approved a restructuring, according to a Bloomberg report earlier this month. The Financial Times reported on Sunday that Openai and Microsoft are rewriting the terms of their multi-billion dollar partnership. FT added that Microsoft is the key persistence of OpenAI restructuring plan.
SoftBank’s Goto doesn’t mention any other companies, but admits Openai has many stakeholders.
"Our conversation is based on the assumption that the reorganization will happen. However, there are different Staekholders and some people may intervene in the project, which may not go as smoothly as we hoped," Goto said.
"But this is beyond our control. We will wait and see what happens."