OpenAI has highlighted its reliance on Microsoft as a significant risk in a financial document shared with prospective investors, ahead of its anticipated IPO later this year [1]. Microsoft supplies 'a substantial portion of our financing and compute,' according to OpenAI, and has invested $13 billion in the company. At the time of OpenAI's restructuring in October, Microsoft's 27% diluted stake in the for-profit segment was valued at $135 billion [1]. OpenAI's document, which resembles an IPO prospectus, also details risks related to its business, including substantial capital expenditures, dependence on compute resources, ongoing litigation with Elon Musk's xAI, and its unique structure as a public benefit corporation under the OpenAI Foundation [1].
Last month, OpenAI secured $110 billion in funding from strategic partners such as Amazon, Nvidia, and SoftBank, and is working with banking partners to add another $10 billion in commitments from a broader investor pool. This additional funding is expected to close by the end of March, according to sources familiar with the deal [1]. The company has experienced rapid commercial growth since launching ChatGPT in late 2022, now boasting 900 million weekly active users and generating $13.1 billion in revenue in 2025. OpenAI was valued at $730 billion by investors last month [1].
OpenAI's document warns that its operating results depend on its ability to diversify partnerships beyond Microsoft. The company stated, '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' [1]. An OpenAI spokesperson clarified that this risk disclosure is standard legal language and not directly tied to any IPO prospectus, emphasizing that Microsoft remains a critical long-term partner [1].
Despite their close relationship, OpenAI and Microsoft are increasingly competing for users in the generative AI market [1].
CONCLUSION
OpenAI's upcoming IPO is set against a backdrop of rapid growth and substantial funding, but its heavy reliance on Microsoft presents a notable risk for investors. The company is actively seeking to diversify its partnerships to mitigate this risk. Market participants will closely watch OpenAI's ability to maintain its momentum and manage its strategic relationships as it prepares for its public debut.