Microsoft says it made $10 billion from OpenAI deals in one quarter

In short: Microsoft says it brought in $10 billion in revenue from business deals connected to OpenAI in the quarter that ended September 30.

What happened

Microsoft disclosed in a regulatory filing that it generated $10 billion in revenue from commercial arrangements with OpenAI during the quarter ending September 30. Microsoft said this includes revenue sharing payments, meaning Microsoft gets a cut of money when OpenAI earns money.

That $10 billion was nearly 11% of Microsoft’s total quarterly revenue of $92.3 billion. Microsoft’s fiscal year starts in July, so this quarter was the first quarter of its 2027 fiscal year.

For Microsoft’s full 2026 fiscal year, the company reported $24.1 billion in revenue tied to OpenAI. At the latest quarterly pace, that would work out to about $40 billion a year.

Microsoft also reported $7.2 billion in outstanding receivables from OpenAI at the end of September, up from $6 billion at the end of June. Receivables are like unpaid invoices, money OpenAI owes Microsoft for past transactions, and they are not additional revenue.

Microsoft did not say how much of the OpenAI related revenue came from revenue sharing versus Azure cloud services. Azure is Microsoft’s rented computing service (like paying for electricity and machines, but for running software online). TechCrunch reported earlier that OpenAI has shared a portion of its revenue with Microsoft as part of their deal, though the exact percentage has not been publicly confirmed by both companies.

Why it matters

This filing shows how tightly connected Microsoft and OpenAI still are financially. Even as the two companies increasingly compete for some of the same customers, a large amount of money is still flowing between them.

Source: TechCrunch AI