OpenAI IPO Preview: Risk Document Discloses Microsoft Dependency, Taiwan Strait Conflict Impact, and 14 Suicide Lawsuits

OpenAI distributed a financial document similar to an IPO prospectus to potential investors, disclosing multiple risks as a preview for its possible listing this year. The document was obtained by CNBC. Microsoft is listed as a top risk, with the document noting that Microsoft provides a significant portion of OpenAI's financing and computing power; any changes in the partnership could impact its business. Microsoft has invested a total of $13 billion, holding about 27% of the diluted equity, and OpenAI's latest valuation is $730 billion.

Other risks include: a commitment to computing power expenditures of approximately $665 billion by 2030; potential supply chain disruptions if TSMC is affected by the Taiwan Strait conflict; three lawsuits filed by Musk's xAI; and at least 14 lawsuits from ChatGPT users or their families alleging the product caused mental illness, suicide, or other harm. OpenAI secured $110 billion in funding last month and is pushing for an additional $10 billion investment commitment, expected to be completed by the end of March.