OpenAI calls out Microsoft reliance as risk in investor document ahead of expected IPO

In a document that resembles an IPO prospectus, OpenAI highlighted the risk of its dependence on Microsoft and of supply disruptions at TSMC.

In a document that resembles an IPO prospectus, OpenAI said its close ties with Microsoft could be a potential risk to its business, telling investors that the software company is responsible for "a substantial portion of our financing and compute."

OpenAI included sections titled "Risks Related to the Transaction" and "Risks Related to our Business" in a financial document, viewed by CNBC, that the company shared with prospective investors tied to its recent record financing round.

Last month, OpenAI announced $110 billion in funding from strategic partners including Amazon, Nvidia, and SoftBank. The company is working with banking partners to tack on an additional $10 billion worth of commitments from a broader pool of investors, according to sources familiar with the deal. That part of the round is on track to close by the end March, said the people, who asked not to be named because the details are confidential.