Microsoft generates $10 billion in revenue from OpenAI.
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Microsoft Reports Revenue from OpenAI Reaches $10 Billion
In a recent regulatory filing, Microsoft revealed that it generated an impressive $10 billion in revenue through commercial agreements with OpenAI during the quarter ending September 30, 2026. This revenue accounts for nearly 11% of Microsoft’s overall quarterly income, which totaled $92.3 billion. This financial connection underscores the significant ties that still bind the two organizations, even as they increasingly find themselves competing for the same customer base.
Breakdown of Fiscal Performance
Microsoft’s fiscal year commences in July, making the third quarter of the fiscal calendar—ending September 30, 2026—the start of its fiscal year 2027. For the entirety of the fiscal year 2026, revenue affiliated with OpenAI accumulated to $24.1 billion. With this current momentum, Microsoft is poised to achieve approximately $40 billion in annual revenue from its arrangements with OpenAI going forward.
As of September 30, 2026, Microsoft disclosed that it had $7.2 billion in outstanding receivables from OpenAI, an increase from $6 billion at the end of June. It’s important to note that these outstanding receivables are not classified as additional revenue but rather represent amounts owed by OpenAI for previous transactions.
Understanding Revenue Streams
The specific breakdown of Microsoft’s revenue from OpenAI remains somewhat unclear. It is uncertain how much of the reported income resulted from revenue-sharing payments versus Azure cloud services. TechCrunch has been proactive in seeking further information on this matter. Notably, in November 2025, TechCrunch cited leaked documents that indicated Microsoft garnered $865.8 million in net revenue-sharing payments from OpenAI during the first nine months of that year.
According to informal reports, OpenAI is believed to share approximately 20% of its revenue with Microsoft, a component of an earlier agreement that followed Microsoft’s investment of over $13 billion into the AI startup. However, neither Microsoft nor OpenAI has formally confirmed this revenue-sharing percentage.
Future Agreements and Commitments
As stipulated in an agreement signed in April 2026, OpenAI is obligated to continue sharing revenue with Microsoft until 2030, although this arrangement is subject to a cap. This deal allows OpenAI the flexibility to collaborate with other competing cloud providers, highlighting a shift in the dynamics of their partnership.
The collaboration underwent notable adjustments starting in October 2025, when Microsoft eased its restrictions on OpenAI, giving the company greater liberty to establish partnerships with alternative cloud service providers. In return, OpenAI agreed to an additional commitment to purchase $250 billion worth of Azure services as per the terms of their updated agreement in October 2025.
Changes in Ownership Stake
Additionally, Microsoft’s ownership stake in OpenAI has seen a slight decrease, moving from approximately 25% in June to 24% by September. This marks a continuing trend of gradual dilution, which began after the recapitalization process in October 2025, when Microsoft’s stake was roughly 27%. The reasons for this dilution have not been specified by Microsoft.
Conclusion
Microsoft’s robust financial ties with OpenAI highlight the intricate relationship between the two organizations, characterized by significant revenue generation alongside evolving competitive landscapes. As both companies navigate their partnership and individual market positions, the implications of these agreements will undoubtedly carry weight in the tech industry for years to come. The combination of revenue-sharing models, cloud service commitments, and shifting ownership stakes illustrates a complex yet crucial partnership that shapes the current AI and technology landscape.
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