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OpenAI is reigniting its pursuit of unprecedented capital, with sources confirming to WIRED that the AI pioneer will reopen its $40 billion funding round on July 28. This colossal fundraising effort—which would cement OpenAI's $300 billion valuation—hinges on a critical condition: Japanese investment titan SoftBank may slash its $22.5 billion commitment to $10 billion if OpenAI fails to restructure its controversial corporate governance by December 31.

The SoftBank Gambit

SoftBank's massive stake represents 75% of the current tranche, continuing its lead position from March's initial $10 billion close. Yet this high-stakes partnership reveals fractures. The firms are collaborating on Stargate—a four-year, $500 billion AI data center initiative—but clash over implementation details like location strategy. Reports indicate CEO Sam Altman has pursued Stargate-aligned data center deals independently, bypassing SoftBank's input.

"This isn't just financing—it's a governance stress test," says a venture capitalist familiar with the terms. "SoftBank's conditional commitment forces OpenAI to resolve structural contradictions that have haunted it since Elon Musk's departure."

Funding Firepower and Friction

OpenAI's total funding now approaches $64 billion, with backers including Microsoft, Nvidia, Andreessen Horowitz, and Sequoia. The Microsoft relationship remains especially complex: Azure provides critical cloud infrastructure while gaining exclusive model access, though recent reports hint at operational tensions.

Restructuring for Survival

The SoftBank deal depends on OpenAI transforming its for-profit subsidiary into a public benefit corporation (PBC)—a hybrid entity designed to balance shareholder returns with societal good. A new nonprofit holding company would control the PBC, theoretically realigning with OpenAI's original mission to "benefit humanity." This structural overhaul requires approval from California and Delaware attorneys general by early 2025—directly addressing Elon Musk's lawsuit accusing OpenAI of becoming a "de facto Microsoft subsidiary" prioritizing profit over ethical AI development.

The Stakes Beyond Billions

Beyond financial engineering, this funding round exposes AI's trillion-dollar infrastructure reality. The Stargate project underscores how model development now demands data centers rivaling small cities in power consumption. Meanwhile, the restructuring ultimatum forces OpenAI to institutionalize its fractured identity: Can it simultaneously satisfy venture-scale returns, hyperscaler partnerships, and its founding oath to safeguard against AGI risks?

As July 28 approaches, OpenAI isn't just raising capital—it's negotiating the soul of commercial AI. The outcome will reverberate through every boardroom building large language models, proving that in artificial intelligence, architecture is never just technical.

Source: WIRED (Additional reporting by Kylie Robison and Zoë Schiffer)