Microsoft Reveals OpenAI Contributed $24.1 Billion, 70% of AI Revenue
AM730 · 2 SOURCESabout 23 hours ago2 MIN
Summary
Microsoft disclosed in a regulatory filing that OpenAI generated $24.1 billion in revenue during the fiscal year ended June, accounting for approximately 70% of Microsoft's AI business income . The figure encompasses all sales and revenue sharing from OpenAI under their cloud computing and AI development agreement . Microsoft CEO Satya Nadella had previously projected annualized AI revenue reaching $37 billion by March, though the company did not update this figure in its latest quarterly earnings .
Key Points
- OpenAI contributed $24.1 billion to Microsoft's AI revenue in the fiscal year ended June 2025, representing roughly 70% of the total AI business .
- Bloomberg estimated Microsoft's total AI revenue at approximately $34 billion by applying the 123% growth rate from March to June .
- The $24.1 billion includes all OpenAI sales plus revenue sharing, while OpenAI pays Microsoft for Azure computing, inference, model development costs, and profit sharing .
- Microsoft previously disclosed AI annualized revenue of $13 billion in December 2024 and $37 billion by March 2025, marking only two prior disclosures .
- New commercial bookings reached approximately $51 billion in the latest quarter, with OpenAI contributing the majority of this growth despite being under 10% of total Microsoft revenue .
Why It Matters
This unprecedented disclosure highlights Microsoft's deep reliance on OpenAI despite efforts to diversify through investments in Anthropic and proprietary model development . The timing suggests potential preparation for OpenAI's IPO, as noted by accounting researcher Olga Usvyatsky of Nonlinear Analytics, raising questions about sustainability of Microsoft's AI revenue model .
This unprecedented disclosure highlights Microsoft's deep reliance on OpenAI despite efforts to diversify through investments in Anthropic and proprietary model development . The timing suggests potential preparation for OpenAI's IPO, as noted by accounting researcher Olga Usvyatsky of Nonlinear Analytics, raising questions about sustainability of Microsoft's AI revenue model .