Home · Technology · Nov 3 archive
Microsoft Reports $10 Billion in Revenue from OpenAI
Confirmed
In Short: Microsoft reported $10 billion in revenue from its business with OpenAI in the quarter ended September 30, according to its latest filing.
Microsoft reported $10 billion in revenue from its business with OpenAI in the quarter ended September 30, according to its latest filing. This represents nearly 11% of Microsoft’s total quarterly revenue of $92.3 billion.
The Redmond company’s total revenue from its business with OpenAI for the fiscal year that ended in June was $24.1 billion, or about $6 billion a quarter on average.
According to the filing, Microsoft owns about 24% of OpenAI, down from about 25% in June and about 27% after OpenAI’s restructuring a year ago.
Azure revenue rose 48% to $33.2 billion in the quarter, beating Wall Street’s expectations and the company’s own forecast of 44% to 45% growth.
Microsoft is also offering voluntary buyouts to about 60,000 employees across the United States, Canada, India, and the United Kingdom as part of its cost-cutting strategy.
In July, Microsoft announced plans to cut 4,800 jobs as it restructured its Xbox gaming business and sought to improve returns from the division.
OpenAI President Greg Brockman represented the company while CEO Sam Altman remained in San Francisco for the company's annual DevDay conference.
At a White House lunch on Tuesday, President Donald Trump hosted roughly 31 technology executives and government officials, including the CEOs of Nvidia, Meta, Google, Microsoft, and Anthropic.
Microsoft Chief Financial Officer Amy Hood implemented a 30% profit margin target for the Xbox gaming division in the fall of 2023.
OpenAI may be preparing a consumer agent codenamed ‘o’, as reported by TestingCatalog on September 26.
The Seattle Times Co. And Newsday sued OpenAI and Microsoft on September 4, 2026, filing a federal copyright and trademark complaint in the U.S. District Court for the Southern District of New York.
A senior Microsoft executive admitted that AIs are “hoovering up” the work of millions of people, in a process that could be seen as “an astonishing theft of unprecedented proportions.”
What this adds
Microsoft's revenue from OpenAI highlights the financial ties between the two companies, despite increasing competition and the need for cost-cutting measures.
The admission by a senior Microsoft executive regarding AI training raises questions about the ethical implications of AI development and its impact on intellectual property rights.
Background
Alphabet reported Q3 2026 revenue of $127.6 billion, marking a 25% increase from the same period in 2025.
What's confirmed
- Microsoft reported $10 billion in revenue from its business with OpenAI in the quarter ended September 30, according to its latest filing. This represents nearly 11% of Microsoft’s total quarterly revenue of $92.3 billion.
- The Redmond company’s total revenue from its business with OpenAI for the fiscal year that ended in June was $24.1 billion, or about $6 billion a quarter on average.
- According to the filing, Microsoft owns about 24% of OpenAI, down from about 25% in June and about 27% after OpenAI’s restructuring a year ago.
- Azure revenue rose 48% to $33.2 billion in the quarter, beating Wall Street’s expectations and the company’s own forecast of 44% to 45% growth.
- Microsoft is also offering voluntary buyouts to about 60,000 employees across the United States, Canada, India, and the United Kingdom as part of its cost-cutting strategy.
- In July, Microsoft announced plans to cut 4,800 jobs as it restructured its Xbox gaming business and sought to improve returns from the division.
- OpenAI President Greg Brockman represented the company while CEO Sam Altman remained in San Francisco for the company's annual DevDay conference.
- At a White House lunch on Tuesday, President Donald Trump hosted roughly 31 technology executives and government officials, including the CEOs of Nvidia, Meta, Google, Microsoft, and Anthropic.
- Microsoft Chief Financial Officer Amy Hood implemented a 30% profit margin target for the Xbox gaming division in the fall of 2023.
- OpenAI may be preparing a consumer agent codenamed ‘o’, as reported by TestingCatalog on September 26.
- The Seattle Times Co. And Newsday sued OpenAI and Microsoft on September 4, 2026, filing a federal copyright and trademark complaint in the U.S. District Court for the Southern District of New York.
What's still developing
- Windows licenses sold through PC makers, along with Surface and other Microsoft devices, brought in $3.6 billion.
- That represents nearly 11% of Microsoft’s total quarterly revenue of $92.3 billion, highlighting the enormous financial ties that remain between the two companies even as they increasingly compete for the same customers.
- Disrupt 2026: OpenAI, Anthropic, Replit, and more take over 6 industry stages. 25% off tickets now Back by popular demand: Save up to $300 on Disrupt Founder, CEO, and tireless Nvidia hype man Jensen Huang told attendees at the Goldman Sachs Communacopia + Technology conference on Thursday why his company’s AI domination — and revenues — will continue its record-breaking growth streak through the end of next year.
- There’s been endless hand-wringing over whether Nvidia’s party will end as it faces increasing competition for GPUs and AI chips from all directions: the hyperscalers (Amazon, Microsoft, and Google, each building their own) and the AI labs (Anthropic and OpenAI, which are building their own), as well as from newly public competitor Cerebras and startups such as Etched.
- OpenAI, the lab whose agents caused the most prominent breach, does not appear on the list, and neither company has publicly explained the omission.
- More than 100 organizations, among them Anthropic, Microsoft, and Palantir, have adopted it.
- Microsoft recorded $19.64 billion in positive free cash flow in the second quarter, despite a 23% year-over-year decline.
- First Big Tech Firm to Break 100 Trillion Won in a Quarter Preliminary Figure of 107 Trillion Won Doubles Alphabet, Microsoft Only Company Besides Aramco to Reach the Mark Full-Year Operating Profit Crown Effectively Secured Samsung Electronics (005930.KS) has become the first technology company in the world to post quarterly operating profit of more than 100 trillion won.
- In dollar terms, Samsung's operating profit of about $80.1 billion far exceeded Nvidia's $63.7 billion and was double that of Alphabet at $40.8 billion and Microsoft at $40.6 billion.
- Alphabet and Microsoft reported surging demand for artificial intelligence in their quarterly earnings Wednesday, and the technology giants continue pouring billions of dollars into the infrastructure needed to support the growing industry.
- The admission was contained in a cache of documents released by a US court on Thursday, from the ongoing legal spat between US newspapers and AI companies including OpenAI and Microsoft.
- By forcing developers toward the gpt-5.6-terra replacement, as documented on the OpenAI deprecations page, OpenAI is effectively eliminating the escape hatches that allowed users to remain on older, predictable infrastructure.