OpenAI identifies Microsoft partnership as significant risk factor

OpenAI has identified its close relationship with Microsoft as a primary risk to its business in a detailed financial document shared with prospective investors.

The report, which mirrors an IPO prospectus, notes that the software giant is currently responsible for "a substantial portion of our financing and compute."

This disclosure surfaced as the company prepares to close a significant funding round, having already secured $110 billion from partners including Amazon and Nvidia.

The document warns that any changes to this alliance could be detrimental. "If Microsoft modifies or terminates its commercial partnership with us, or if we are unable to successfully diversify our business partners, our business, prospects, operating results and financial condition could be adversely affected," the company stated.

Despite these warnings, an OpenAI spokesperson clarified the nature of the filing, saying: "This is a standard legal risk factor disclosure, unrelated to any potential IPO prospectus." They further emphasised the strength of the bond, adding: "Microsoft is and will remain a critical long term partner."

Beyond its dependency on Microsoft, OpenAI cited global chip shortages and ongoing litigation with Elon Musk’s xAI as further challenges.

The firm also acknowledged 14 lawsuits involving product safety and user well-being. Looking ahead, the company is managing $665 billion in estimated compute commitments through 2030.

While Sam Altman was not specifically named as a risk factor, his leadership remains central as OpenAI transitions from its 2015 origins as a research lab towards a highly anticipated public market debut later this year.