OpenAI flags reliance on Microsoft and compute as key risks ahead of potential IPO

March 23, 2026 OpenAI has warned investors that its close relationship with Microsoft represents a material risk to its business, citing reliance on the company for financing and compute resources. The disclosure comes as OpenAI raises more than $110 billion in funding and prepares for a potential public market debut.

The company outlined the risks in a financial document shared with prospective investors, stating that Microsoft accounts for “a substantial portion of our financing and compute,” and warning that changes to the partnership could negatively affect its operations.

The document, which includes sections titled “Risks Related to the Transaction” and “Risks Related to our Business,” provides insight into how OpenAI is framing its dependencies as it scales. Microsoft has invested approximately $13 billion since 2019 and holds a 27 per cent diluted stake in OpenAI’s for-profit entity, previously valued at $135 billion. The partnership also includes commitments to run services on Microsoft’s Azure cloud.

OpenAI said its performance depends in part on expanding relationships beyond Microsoft. “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 wrote. A spokesperson described the language as standard legal disclosure and said Microsoft “is and will remain a critical long term partner.”

The disclosures come as OpenAI’s scale continues to increase. The company reported 900 million weekly active users for ChatGPT and $13.1 billion in revenue for 2025, with a recent valuation of $730 billion. Its latest funding round includes strategic backing from Amazon, Nvidia and SoftBank, with an additional $10 billion in commitments expected to close by the end of March.

Alongside partnership risks, OpenAI highlighted its growing dependence on compute infrastructure. The company said it expects to continue significant capital expenditures on data centres and related systems, with estimated compute spending commitments of roughly $665 billion through 2030. It also warned that supply chain disruptions could impact operations, particularly if chip manufacturer Taiwan Semiconductor Manufacturing Company is affected by geopolitical tensions.

The company noted ongoing litigation with Elon Musk’s xAI and pointed to its structure as a public benefit corporation under the OpenAI Foundation as additional factors investors should consider.

While Microsoft remains a central partner, the relationship is evolving alongside competition. Microsoft listed OpenAI as a competitor in its 2024 annual report, and OpenAI has begun working with other cloud providers, including CoreWeave, Google and Oracle, to meet growing demand.

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Jim Love

Jim is an author and podcast host with over 40 years in technology.

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