OpenAI Moves Toward Full Stack Ambitions After Microsoft Deal Breakthrough

As the long-running legal and contractual dispute with Microsoft nears resolution, OpenAI is poised to unlock a bold new chapter in its evolution. The startup has signed a memorandum of understanding to end its contentious relationship with Microsoft, paving the way for a structural overhaul that will allow OpenAI to issue traditional equity and significantly expand its ability to raise capital. This shift marks a turning point, enabling the company to pursue an ambitious "full stack" strategy that could transform it from a leading AI research lab into a dominant technology powerhouse—or risk financial strain if execution falters. At the Goldman Sachs tech conference, OpenAI CFO Sarah Friar outlined the company’s vision: becoming a full stack enterprise. This means owning and controlling every layer of its technology infrastructure—from hardware and energy to software and user distribution. OpenAI is already building capabilities across the entire stack, and with the Microsoft agreement in place, it can now accelerate these efforts. At the foundation of the stack lies energy. AI training and operations demand massive power, and while OpenAI doesn’t yet operate its own energy sources, CEO Sam Altman has personally invested in fusion energy startups like Helion, signaling long-term ambitions in sustainable, high-capacity power. On the hardware front, OpenAI has made critical moves to reduce reliance on third-party chips. It hired Richard Ho, a former Google engineer who led development of the company’s TPU chips, to lead its in-house chip design efforts. This initiative aims to build custom silicon optimized for OpenAI’s models. Data centers are next. While OpenAI currently relies on cloud providers like Microsoft Azure to rent computing power, Friar confirmed the company plans to build its own data centers in the future. Analysts like Eric Sheridan of Goldman Sachs argue that owning infrastructure gives companies greater control, efficiency, and strategic independence. At the model layer, OpenAI already holds a commanding position with GPT-4 and the upcoming GPT-5, alongside its open-weight models. Its developer ecosystem is robust, with around 4 million developers using its APIs. This foundation supports a growing ecosystem of AI-powered applications. Distribution is another key focus. OpenAI has expanded beyond software by acquiring Jony Ive’s AI hardware startup for over $6 billion and launching a web browser—tools designed to embed its AI into users’ daily lives. The company is also venturing into enterprise and consumer applications, hiring Fidji Simo, former Instacart CEO, as head of Applications, and bringing on Vijaye Raji as CTO. The recent acquisition of Statsig for over $1 billion and the launch of the OpenAI Jobs Platform—reminiscent of LinkedIn—signal ambitions to compete in the application space. Ultimately, OpenAI’s goal appears to mirror Google’s integrated ecosystem: a suite of interconnected AI-powered tools that span search, productivity, communication, and more. Achieving this will require vast resources, talent, and execution precision. The resolution with Microsoft clears a major roadblock, potentially unlocking billions in future funding, including a possible $10 billion commitment from SoftBank. With its corporate structure now stable and its vision crystallizing, OpenAI is no longer just building AI—it’s building an entire AI-driven technology empire. The journey is fraught with risk, but the stakes have never been higher.