Microsoft earned $10B from OpenAI partnership
What's the story
Microsoft has reported a whopping $10 billion in revenue from its commercial agreements with OpenAI for the quarter ending September 30. The figure accounts for nearly 11% of Microsoft's total quarterly revenue of $92.3 billion, according to a regulatory filing by the company. The financial ties between the two companies remain strong despite their growing competition for the same customers.
Financial impact
Microsoft could make $40 billion a year from OpenAI
For the entire fiscal year (FY) 2026, revenue from OpenAI amounted to an impressive $24.1 billion.
At this rate, Microsoft could rake in as much as $40 billion a year from its arrangements with OpenAI.
The tech giant also reported $7.2 billion in receivables from OpenAI at the end of September, up from June's figure of $6 billion.
Payment details
Breakdown of Microsoft's revenue from OpenAI remains unclear
The exact breakdown of Microsoft's revenue from OpenAI, whether it comes from revenue-sharing payments or Azure cloud computing services, remains unclear.
However, a November 2025 report by TechCrunch had revealed that Microsoft received $865.8 million in net revenue-sharing payments from OpenAI in the first nine months of that year.
Under a previous deal where Microsoft invested over $13 billion in the AI start-up, OpenAI reportedly shares 20% of its revenue with the tech giant.
Agreement terms
OpenAI to continue sharing revenue with Microsoft until 2030
As per an April 2026 agreement, OpenAI has agreed to continue sharing revenue with Microsoft until 2030, within certain limits.
This is despite the fact that OpenAI is now free to partner with competing cloud providers.
The companies started easing their once-exclusive partnership in October 2025 when Microsoft loosened its grip on OpenAI, allowing the start-up more freedom to collaborate with other cloud providers like Amazon Web Services (AWS) and Oracle.
Ownership changes
Microsoft's stake in OpenAI sees minor dip
Microsoft's stake in OpenAI has seen a minor dip from about 25% in June to 24% in September. This marks a gradual decline from some 27% after the October 2025 recapitalization.
The tech giant did not disclose what caused this dilution, but it is part of the evolving financial landscape between Microsoft and OpenAI.