Microsoft could be OpenAI's biggest partner and most substantial IPO risk — raising investor concerns over future valuation

Microsoft's multi-billion-dollar partnership with OpenAI was considered one of the best "tech bromances" in history, but it has turned somewhat sour.

Tension between the companies can be attributed to a wide range of reasons, including computing power and funding, prompting them to renew their vows under a new definitive agreement.

But as it now seems, OpenAI's partnership with Microsoft has hit another speed bump. According to CNBC, OpenAI indicated that its close ties to Microsoft might be a risk to its business operations in what the outlet describes as "a document that resembles an IPO prospectus."

The ChatGPT maker further indicated that Microsoft is responsible for “a substantial portion of our financing and compute,” potentially indicating that the tech giant is practically the engine behind its operations.

“This is a standard legal risk factor disclosure, unrelated to any potential IPO prospectus,” an OpenAI spokesman indicated while issuing a statement about the comment above. “Similar language has been in place for years. Microsoft is and will remain a critical long-term partner.”

The document, shared with prospective investors during OpenAI's recent $110 funding round from NVIDIA, Amazon, SoftBank, and other investors — Microsoft’s notable absence included sections highlighting “Risks Related to the Transaction” and “Risks Related to Our Business.”

While Microsoft appears to be the primary obstacle to OpenAI’s IPO plans, the company also cited its status as a public benefit corporation, insufficient computing resources, Elon Musk's lawsuit against the company, and heavy capital expenditures as additional risk factors.

Since last year, multiple reports suggest that OpenAI has been laying down the groundwork for what could be one of the largest IPOs in history. The reports further claimed that the ChatGPT maker could be getting ready to go public and file with regulators as early as the second half of 2026.

But it might be an uphill task as market analysts and experts claim that the AI firm must match Microsoft’s size today in 4 years to hit a $1 trillion IPO valuation as the "Cancel ChatGPT" continues to gain momentum after OpenAI signed a controversial deal with the Pentagon to use its AI technology and ChatGPT for mass surveillance of American citizens and autonomous weapons systems.

As it happens, a separate report indicated that Microsoft was considering taking legal action against OpenAI and Amazon over a $50 billion deal, alleging that it violates a critical clause granting Microsoft exclusive rights as OpenAI’s cloud provider through Azure.

However, it appears the companies are seeking to resolve the dispute out of court, as Microsoft is already entangled in investigations in the US, UK, and EU over alleged anti‑competitive licensing practices tied to Azure, while OpenAI pursues its coveted IPO filing.

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