Microsoft Generates $10 Billion From OpenAI Arrangements
Microsoft earned $10 billion from its commercial deals with OpenAI, making up nearly 11% of its quarterly revenue. This highlights the significant financial connection between the two companies.
Original reporting · techcrunch.com
Original: “Microsoft recorded $10 billion in revenue from OpenAI”
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How this was written. Awesome B2B Growth wrote this article with a language model from TechCrunch’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from TechCrunch’s report
- Microsoft earned $10 billion from its commercial deals with OpenAI in the quarter ended September 30.
- The company's revenue from OpenAI represents nearly 11% of its total quarterly revenue.
- Microsoft is on track to earn $40 billion annually from OpenAI-related arrangements.
- OpenAI is committed to sharing revenue with Microsoft through 2030.
- Microsoft's ownership stake in OpenAI has declined slightly to 24%.
Microsoft's revenue from OpenAI has reached a significant milestone, according to TechCrunch. The company's financial filings show that OpenAI-related arrangements generated $10 billion in revenue for Microsoft in the quarter ended September 30. This represents a substantial portion of Microsoft's total quarterly revenue of $92.3 billion. Microsoft's financial year begins in July, which makes the quarter ended September 30 the first quarter of its fiscal 2027.
The financial ties between Microsoft and OpenAI are considerable, with revenue from OpenAI hitting $24.1 billion for the full 2026 fiscal year. At its current pace, Microsoft is on track to earn $40 billion annually from OpenAI-related arrangements. This underscores the importance of the partnership between the two companies.
Microsoft is also owed a significant amount of money by OpenAI, with outstanding receivables totaling $7.2 billion at the end of September. This amount has increased from $6 billion at the end of June, indicating a growing financial obligation for OpenAI. The exact nature of these receivables is not clear, but they represent payments owed to Microsoft for previous transactions.
The terms of the deal between Microsoft and OpenAI are complex, with OpenAI reportedly sharing a portion of its revenue with Microsoft. While the exact percentage is not publicly confirmed, it is believed to be around 20%. This revenue-sharing arrangement is part of a larger agreement between the two companies, which includes a commitment by OpenAI to purchase Azure services from Microsoft.
The partnership between Microsoft and OpenAI has evolved over time, with the companies loosening their exclusive ties in October 2025. This has allowed OpenAI to partner with other cloud providers, while Microsoft has retained a significant ownership stake in the company. However, Microsoft's ownership stake has declined slightly, from around 25% in June to 24% in September.
The future of the partnership between Microsoft and OpenAI is likely to be shaped by their ongoing commercial arrangements. With OpenAI committed to sharing revenue with Microsoft through 2030, the company is likely to remain a significant source of income for Microsoft. As the AI market continues to evolve, the financial ties between Microsoft and OpenAI will be an important factor to watch.
Questions and answers
How much revenue did Microsoft generate from OpenAI in the quarter ended September 30?
Microsoft earned $10 billion from its commercial deals with OpenAI in the quarter ended September 30.
What percentage of Microsoft's quarterly revenue comes from OpenAI?
Revenue from OpenAI represents nearly 11% of Microsoft's total quarterly revenue.
How long is OpenAI committed to sharing revenue with Microsoft?
OpenAI is committed to sharing revenue with Microsoft through 2030.
