OpenAI named dependence on Microsoft as the main risk before going public
The maker of the popular chatbot ChatGPT has warned potential investors that its close collaboration with Microsoft could pose a serious risk to the business.
The maker of the popular chatbot ChatGPT has warned potential investors that its close collaboration with Microsoft could pose a serious risk to the business.
As CNBC writes in a special financial document, which in its structure resembles a prospectus for an initial public offering (IPO), the artificial intelligence developer directly noted that Microsoft currently provides a significant portion of their funding and computing power.
This document was prepared and sent out in preparation for a record-breaking funding round. Last month, OpenAI announced it had raised $110 billion from a pool of strategic partners that included Amazon, Nvidia, and SoftBank.
The company is currently working with banking partners to raise another $10 billion from a broader investor base by the end of March, according to sources. All of these moves suggest that OpenAI’s public debut on the stock market could happen as early as this year.
In addition to over-reliance on Microsoft's resources and money, the business risk sections list other potential threats. Among the main challenges, management highlights huge capital expenditures, total dependence on the availability of computing resources on the market, and litigation with Elon Musk's company xAI.
The startup's unusual corporate structure is cited as a separate risk, as the parent organization of the commercial corporation is still the non-profit OpenAI Foundation.
Previously, Nvidia CEO Jensen Huang said that he no longer plans to invest in OpenAI due to fears of the company going public.
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