OpenAI recognized dependence on Microsoft as a risk for investors

OpenAI is not yet preparing for an IPO, but in its recent report it highlights several key risks for investors, including a strong dependence on Microsoft and high capital expenditures.

1. Dependence on Microsoft* History – Since 2019 Microsoft has been OpenAI’s primary financial partner, investing more than $13 billion. As a result of the restructuring in October, the startup received 27 % equity in the company worth $135 million.

* Potential risk – The report notes that such dependence could pose a threat to third‑party investors because most financing and computing power is provided by Microsoft through Azure.

2. Funding and new investments* Last month OpenAI raised a record $110 billion from Amazon, Nvidia and SoftBank.

* An additional $10 million is planned to be raised from a broader group of investors by the end of the month.

3. Other risks mentioned in the report | Risk | Brief description |

|---------------------------|----------------------------------------------|
| Capital expenditures | Expected AI infrastructure costs – about $665 million through 2030. |
| Dependence on computing resources | Restrictions in access to capacity could slow development. |
| Legal proceedings | Includes a dispute with Elon Musk’s xAI and claims from data rights holders whose data the models are trained on. |
| Unconventional corporate structure | OpenAI is described as a “public benefit corporation,” which may influence its governance decisions. |

4. Other partners and suppliers* Microsoft – the primary cloud provider, but since 2023 the company has expanded collaboration with other cloud platforms.

* Hardware suppliers: TSMC, AMD, Nvidia and Broadcom.

Conclusion: OpenAI’s report acknowledges a range of risk factors for investors, the most significant of which remains its dependence on Microsoft. At the same time the company continues to actively raise funds and broaden its partner network beyond a single supplier.