In its quarterly filing for the three months ended September 30, submitted to the SEC on October 28, Microsoft reported $10.0 billion of revenue from OpenAI, about 10.8% of its $92.279 billion total. The figure includes revenue-sharing payments and commercial arrangements beyond Azure cloud purchases, and OpenAI is treated as a related party because Microsoft owns enough of it to count its share of OpenAI's results under the equity method. OpenAI's receivables rose to $7.2 billion at September 30 from $6.0 billion at June 30, while Microsoft's stake fell to an approximate 24% on an as-converted basis from about 25%. Revenue grew 19% and Azure grew 48%, and the article suggests growth would likely still look strong without OpenAI.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: OpenAI Now Makes Up 11% of Microsoft’s Revenue
Read the original on Yahoo Finance ↗
Keywords
MSFTOpenAIartificial intelligencecloud computing
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Microsoft beats Wall Street estimates as Azure growth hits 48%
Microsoft (NASDAQ:MSFT) reported first-quarter revenue of $92.3 billion, up 19% and above the $90.69 billion analysts expected; adjusted earnings per share rose 18% to $4.89, versus an estimate of $4.73. Azure and other cloud services revenue grew 48% to $33.2 billion, above the roughly 45% growth analysts had forecast, while Microsoft Cloud revenue rose 30% to $63.9 billion. Capital expenditure was $39.4 billion, below the $46.59 billion expected, and commercial remaining performance obligation reached $677 billion, short of the $705.6 billion estimate. Microsoft also recorded a $207 million net gain tied to OpenAI and returned $10.2 billion to shareholders; shares rose over 5% in after-hours trading.
- OpenAI to bring AI models to Google's cloud, in further expansion beyond Microsoft
OpenAI will make its models available to developers through Google Cloud, putting them on all three of the top cloud infrastructure providers. The move follows OpenAI saying less than six months ago that Microsoft would no longer hold an exclusive license to its intellectual property, and Amazon announcing plans to host OpenAI models the day after. Google will bring GPT products to its model garden and Antigravity coding tool in the coming weeks. Google's cloud segment saw annualized revenue growth accelerate to about 82% in the second quarter from 63% in the first, while Amazon and Microsoft posted second-quarter cloud growth of 37% and 42%. OpenAI is courting investors at a $1.4 trillion valuation and targeting an initial public offering.
- Microsoft recorded $10 billion in revenue from OpenAI
Microsoft reported $10 billion in revenue from its commercial arrangements with OpenAI, including revenue-sharing payments, in the quarter ended September 30, nearly 11% of its $92.3 billion total quarterly revenue. For the full 2026 fiscal year, OpenAI-related revenue reached $24.1 billion, and at the latest quarterly pace Microsoft would earn about $40 billion a year from these arrangements. Its receivables from OpenAI rose to $7.2 billion at the end of September from $6 billion at the end of June, reflecting amounts owed for past transactions rather than new revenue. The filing does not show how much came from revenue sharing versus Azure cloud services. Under an April 2026 agreement, OpenAI will keep sharing revenue with Microsoft through 2030, subject to a cap, while Microsoft's stake fell from about 25% in June to 24% in September, with no cause specified.
- OpenAI Devalues Itself (Again)
- OpenAI slashes valuation by $150bn
- Trump's FTC Subpoenas OpenAI and Anthropic. Inside the $500 Billion Threat Faced by Microsoft, Amazon, and Google
The U.S. Federal Trade Commission sent civil subpoenas to OpenAI and Anthropic on Oct. 15 as part of a consumer-protection probe, according to Axios. The demands seek documents on security incidents, safeguarding practices, marketing materials and privacy policies, and the FTC reportedly plans to have top AI executives testify. The combined stakes held by Microsoft, Amazon and Alphabet in the two labs total about $554 billion at recent valuations. The article argues the bigger financial risk lies in how the investigation could affect the price the labs fetch when they go public.
Related markets
Latest news
- Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates
The Commerce Department reported that U.S. GDP grew at a seasonally adjusted annualized pace of 3.4% in the third quarter, above the 3.1% estimate and well up from 2.2% in the second quarter. Consumer spending rose 0.5%, slightly below the forecast of 0.6%, while personal income increased 0.2% against a forecast of 0.3%. The same day, the personal consumption expenditures (PCE) price index rose 0.5% in September from the prior month, lifting annual inflation to 3.6%; the monthly rate matched the Dow Jones consensus, while the annual rate was 0.1 percentage point below consensus. Core PCE, which excludes food and energy, rose 0.3% monthly and 3.1% annually, in line with consensus. A day earlier, the Fed held its benchmark rate in a 3.75%-4% range, and Chairman Kevin Warsh said officials want to assess incoming data before deciding their next move.
- Minister of Agriculture and Environment: No abuse of land recovery
Minister of Agriculture and Environment Trịnh Việt Hùng said land recovery under the draft amended Land Law must be strictly controlled, not abused, and not hinder project implementation. The draft shifts from compensating recovered assets to rebuilding people's lives, and requires each land plot to have a unique nationwide identifier. Land price tables and price adjustment coefficients issued by provincial People's Councils will apply from 1/1/2028, and the government proposes continuing the pilot for transferring land-use rights for commercial housing under Resolution 171/2024/QH15 rather than codifying it now. Nationwide there are about 105 million land plots, over 70 million with data and nearly 44 million connected, and the government has assigned the ministry to complete the land database in 2026.
- Microsoft seeks at least $25 billion in first bond sale since 2017
Microsoft is seeking at least $25 billion through a U.S. bond offering of 10 tranches with maturities from two to 40 years, returning to the investment-grade market for the first time in more than nine years. Its last high-grade issuance, in 2017, raised $17 billion, and proceeds will fund general corporate purposes such as capital expenditures, working capital, share repurchases, acquisitions and debt repayment. The sale follows a fiscal first-quarter earnings report showing strong cloud growth, as major technology companies increase spending on AI infrastructure. Initial price guidance ranges from 50 to 55 basis points over Treasuries for the two-year notes to 130 to 135 basis points for the 40-year bonds due 2066.
- One Magnificent Seven Stock Could Deliver Outsized Returns. Here's the Math
The 24/7 Wall St. model sets a 12-month price target of $421.17 for Alphabet (GOOG), implying 34.05% upside from a $314.19 baseline, with a 70% confidence score. Cloud revenue rose 82% to $24.8 billion in the second quarter, backlog reached $514 billion, and cloud operating margin widened from 20.7% to 35.6% over a year. Against that, capex doubled to $44.92 billion, pushing free cash flow to -$5.86 billion, long-term debt rose from $46.5 billion to $98.2 billion, buybacks were suspended, and a $40 billion at-the-market program raises dilution risk. Shares fell 6.58% over the past week and trade at about 13 times trailing earnings, between a 52-week low of $266.47 and a high of $403.96. The bull case reaches $442.49 and the bear case $366.77, which still implies a 16.73% gain.
- Morning Minute: Hedge Funds Left the BTC ETF Trade and Sovereign Wealth Stepped In
Decrypt's Morning Minute examines why hedge funds exited the bitcoin ETF trade while sovereign wealth funds and wealth managers bought. Citing SEC filings, the newsletter says nine hedge funds and banks, including Millennium, Brevan Howard and Goldman Sachs, sold about 68,000 bitcoin worth of ETF shares from the October 2025 high through June, roughly $5.4 billion at current prices. The main driver was shrinking returns on the ETF-futures trade: its annualized spread fell from 7.9% before the high to 4.8% by late October, and Galaxy's Alex Thorn estimates only about 1.5 points remain over T-bills after fees and financing. Morgan Stanley's wealth management arm, Mubadala and the Abu Dhabi Investment Council bought, while investors too small to file cut holdings by just 6.6% as the price fell 49%. Funds have since added about 87,000 bitcoin, and October ETF flows were nearly flat by Tuesday, with $724 million arriving in the last eight sessions.
- Unlimit founder backs Phase blockchain with $45M as mainnet launches
Phase, a new blockchain, lets smartphone users earn PHASE tokens by validating transactions and sharing internet connections with AI agents through its Phase Proxy service, which launched alongside the chain. Unlimit founder Kirill Eves has committed $45 million, covering the first two years of development with another two years of runway, and the company says it has no outside investors. Eves argues that websites often block automated traffic from data centers, so agents need connections from consumer devices, and current flagship smartphones can deliver approximately 35–45 TOPS of AI processing. Phase plans AI computing and multi-model routing services in November, and part of their revenue will buy PHASE on the open market to reward node operators.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.