OpenAI Microsoft Dependency, Big Risks Revealed!

JAKARTA - Behind the global dominance of AI, OpenAI has a big concern: dependence on Microsoft is now called the main risk for the future of its business.

In its latest investor document - seen as a "preview" ahead of a potential IPO - OpenAI openly acknowledges that Microsoft's funding and computing infrastructure support are the backbone of its operations, including for running ChatGPT.

But at the same time, that dependence could be a weak point.

Since 2019, Microsoft has poured around $13 billion into OpenAI and secured about 27 percent of the company's profit-making entity. In return, OpenAI relies heavily on Microsoft's Azure cloud to run its AI services.

This deal has for years been OpenAI's "oxygen" for growth. But now, ahead of a possible listing on the stock exchange with a valuation said to be as high as $730 billion, investors are beginning to question the dependence.

In the document, OpenAI warned that if Microsoft changed or even ended the cooperation, the company's financial condition and business prospects could be significantly impacted.

The situation is getting more complex because the two companies are now not only partners, but also direct competitors in the generative AI market. Microsoft has even included OpenAI in its official competitor list.

To reduce risk, OpenAI has begun to diversify. In the past year, the company reportedly entered into partnerships with other players such as Oracle and Google to expand its computing infrastructure.

This move shows OpenAI's efforts to prove that they can stand on their own - without relying entirely on Microsoft.

But the challenges don't stop there. The investor document also highlights the potential cost of computing up to 665 billion dollars by 2030, global chip shortages, and various lawsuits, including conflicts with one of its founders, Elon Musk.

Although referred to as a "standard risk" in legal documents, the combination of these factors describes one thing: OpenAI is at a major crossroads.