OpenAI’s ongoing $40 billion megaround is dependent on a key condition: the ChatGPT maker being able to complete its conversion to a for-profit structure by the end of the year, according to a person briefed on the round’s terms. If OpenAI isn’t able to do so, the round’s lead investor, SoftBank, could slash the size of the round in half, to $20 billion, the person said. The round consists of two tranches: an initial tranche of $10 billion and a second tranche of $30 billion which is expected to come later this year. If OpenAI is unable to complete the for-profit conversion, the second tranche would be cut to $10 billion, the person briefed said. SoftBank is expected to provide at least $30 billion of the $40 billion OpenAI is attempting to raise this year. The initial tranche of funding is expected to close in the upcoming weeks, the person said. A spokesperson for SoftBank declined to comment. The Wall Street Journal first reported on the conversion condition. This term highlights the amount of pressure OpenAI is under to get its for-profit business out from under the control of the nonprofit. The company has faced several obstacles in doing so, including ongoing negotiations with Microsoft and lawsuits from Elon Musk, an OpenAI cofounder, attempting to stop the conversion process. #Artificial Intelligence https://www.wsj.com/tech/..