MICROSOFT REPORTS $10BN FROM OPENAI ARRANGEMENTS

Microsoft said it generated about $10 billion from commercial arrangements with OpenAI in the quarter ended 30 September 2026. The company disclosed the figure in a regulatory filing on Wednesday. Microsoft reported total quarterly revenue of $92.3 billion, putting the OpenAI-related amount at nearly 11% of the total. The period was the first quarter of Microsoft’s 2027 financial year, which began in July. The arrangements include payments tied to OpenAI’s use of Microsoft’s cloud services and revenue sharing between the companies.

OpenAI runs much of its model training and use on Microsoft Azure. Microsoft records the associated cloud consumption as Azure revenue. Its agreements also give Microsoft a share of revenue from ChatGPT subscriptions and OpenAI API sales through Azure. Microsoft sells OpenAI-powered capabilities through Microsoft 365 Copilot, GitHub Copilot and Azure AI Foundry. The $10 billion figure covers several commercial arrangements, rather than a single product or revenue category.

Microsoft has spent money on data centres, Nvidia graphics processors, its own Maia chips and power capacity to support AI workloads. OpenAI’s demand for computing capacity contributes to Microsoft’s Azure business, while Microsoft uses OpenAI models in products it sells to other customers. The companies also compete for some of the same customers. Microsoft did not assign the full $10 billion to individual products in the disclosed figure.