Microsoft Reports $10 Billion in Quarterly Revenue From OpenAI Arrangements

TL;DR

• Microsoft generated $10 billion from commercial arrangements with OpenAI in the quarter ended September 30.
• The amount represented nearly 11% of Microsoft’s $92.3 billion in quarterly revenue.
• OpenAI-related revenue reached $24.1 billion during Microsoft’s full fiscal 2026.
• OpenAI owed Microsoft $7.2 billion at September’s end, up from $6 billion in June.

OpenAI Accounts for Nearly 11% of Microsoft Revenue

Microsoft generated $10 billion in revenue from commercial arrangements with OpenAI, including revenue-sharing payments, during the quarter ended September 30, according to a regulatory filing published Wednesday.

The figure accounted for nearly 11% of Microsoft’s total quarterly revenue of $92.3 billion, underscoring the financial relationship between the companies even as they increasingly compete for customers.

The reporting period was the first quarter of Microsoft’s fiscal 2027, which began in July.

For the full fiscal 2026, Microsoft recorded $24.1 billion in revenue from OpenAI. Maintaining the latest quarterly pace would imply approximately $40 billion annually, although that calculation is not a company forecast.

Revenue Breakdown Remains Undisclosed

Microsoft did not specify how much of the $10 billion came from revenue sharing versus Azure cloud services or other commercial arrangements.

TechCrunch said it had requested further clarification.

The distinction matters because the disclosed total covers the broader commercial relationship rather than revenue-sharing payments alone.

In November 2025, TechCrunch reported, citing leaked documents, that Microsoft received $865.8 million in net revenue-sharing payments from OpenAI during the first nine months of that year. That narrower figure is not directly comparable with the latest quarterly total.

OpenAI’s Outstanding Payments Rise to $7.2 Billion

Microsoft also reported $7.2 billion in outstanding receivables from OpenAI at the end of September, compared with $6 billion at the end of June.

The balance represents money owed for previous transactions. It is separate from the quarterly revenue disclosure and should not be counted as additional revenue.

The filing did not establish that those payments were overdue.

Partnership Retains Revenue Sharing and Azure Commitments

OpenAI reportedly agreed to share 20% of its revenue with Microsoft under an earlier arrangement associated with the software company’s investment of more than $13 billion. Neither company has publicly confirmed that percentage.

An April 2026 agreement requires OpenAI to continue sharing revenue with Microsoft through 2030, subject to a cap, while allowing it to work with competing cloud providers.

The companies began relaxing their once-exclusive relationship in October 2025. As part of that agreement, OpenAI committed to purchasing an additional $250 billion in Azure services.

Those commitments leave the companies commercially intertwined despite OpenAI’s greater flexibility to secure computing capacity elsewhere and their growing competition.

Microsoft’s OpenAI Stake Falls to About 24%

Microsoft’s ownership interest in OpenAI declined from approximately 25% in June to 24% in September.

That extends a gradual reduction from roughly 27% following OpenAI’s October 2025 recapitalization.

Microsoft did not explain what caused the latest dilution. Despite the smaller stake, the quarterly disclosures show that OpenAI remains a substantial source of commercial revenue for the software company.