Microsoft’s AI Revenue Is Primarily Tied to Open AI, Latest Disclosure Shows
Microsoft’s latest disclosure shows that most of its artificial-intelligence revenue comes from OpenAI. The software giant said in a regulatory filing last week that it recorded $24.1 billion in revenue from OpenAI during the year ended in June 2026. Microsoft CEO Satya Nadella had previously said that, as of the end of the March 2026 quarter, the company’s AI business was on track to reach an annualized revenue run rate of $37 billion. Microsoft did not update its total AI sales when it reported fiscal fourth-quarter results last week. The disclosure indicates that OpenAI accounted for more than half of Microsoft’s AI sales in the most recent fiscal year, likely about 70%, underscoring Microsoft’s heavy reliance on the closely linked partner. Under the companies’ agreement, OpenAI pays Microsoft for computing capacity, costs related to developing AI models and a share of revenue. Microsoft has sought to reduce its reliance on OpenAI, including by investing in Anthropic PBC and developing its own models. Investors, however, continue to ask how much of Microsoft’s AI business revenue comes from OpenAI. Assuming Microsoft’s annualized AI revenue continued growing at the March quarter’s 123% rate, its AI business would have generated about $34 billion in revenue for the fiscal year ended in June 2026. That figure can be directly compared with the $24.1 billion that OpenAI contributed during the year, according to the new disclosure. Microsoft had previously disclosed the overall size of its AI business only twice. The first disclosure came for the quarter ended in December 2024, when the company said the business was on track to exceed $13 billion in annualized sales. The second came for the quarter ended in March 2026, when Microsoft said annualized revenue was on track to exceed $37 billion. Microsoft’s total AI revenue includes revenue from all AI customers, as well as sales of AI-specific products to any customer. A company spokesperson confirmed that the figure includes all sales to OpenAI and revenue-sharing income. OpenAI’s share is much smaller relative to Microsoft’s total revenue, accounting for less than 10%. Microsoft said it added about $51 billion in commercial orders in the most recent quarter. Even so, OpenAI accounted for most of the growth in new orders for the year. Before last week, Microsoft had never clearly disclosed its total revenue from OpenAI. Olga Usvyatsky, an accounting researcher and founder of data-analytics firm Nonlinear Analytics, wrote in a report that the disclosure could be related to OpenAI’s plans for an initial public offering. KeyBanc analyst Jackson Ader said an important unanswered question is how much of OpenAI’s contribution came from the revenue-sharing agreement and how much came from cloud computing or other Microsoft services. “The more of this revenue that comes from Microsoft providing services to OpenAI, rather than investment gains, the more positive my view would be,” he said.
The software giant said in a regulatory filing last week that it recorded $24.1 billion in revenue from OpenAI during the year ended in June 2026. Microsoft CEO Satya Nadella had previously said that, as of the end of the March 2026 quarter, the company’s AI business was on track to reach an annualized revenue run rate of $37 billion. Microsoft did not update its total AI sales when it reported fiscal fourth-quarter results last week.
The disclosure indicates that OpenAI accounted for more than half of Microsoft’s AI sales in the most recent fiscal year, likely about 70%, underscoring Microsoft’s heavy reliance on the closely linked partner.
Under the companies’ agreement, OpenAI pays Microsoft for computing capacity, costs related to developing AI models and a share of revenue. Microsoft has sought to reduce its reliance on OpenAI, including by investing in Anthropic PBC and developing its own models. Investors, however, continue to ask how much of Microsoft’s AI business revenue comes from OpenAI.
Assuming Microsoft’s annualized AI revenue continued growing at the March quarter’s 123% rate, its AI business would have generated about $34 billion in revenue for the fiscal year ended in June 2026. That figure can be directly compared with the $24.1 billion that OpenAI contributed during the year, according to the new disclosure.
Microsoft had previously disclosed the overall size of its AI business only twice. The first disclosure came for the quarter ended in December 2024, when the company said the business was on track to exceed $13 billion in annualized sales. The second came for the quarter ended in March 2026, when Microsoft said annualized revenue was on track to exceed $37 billion.
Microsoft’s total AI revenue includes revenue from all AI customers, as well as sales of AI-specific products to any customer. A company spokesperson confirmed that the figure includes all sales to OpenAI and revenue-sharing income.
OpenAI’s share is much smaller relative to Microsoft’s total revenue, accounting for less than 10%. Microsoft said it added about $51 billion in commercial orders in the most recent quarter. Even so, OpenAI accounted for most of the growth in new orders for the year.
Before last week, Microsoft had never clearly disclosed its total revenue from OpenAI. Olga Usvyatsky, an accounting researcher and founder of data-analytics firm Nonlinear Analytics, wrote in a report that the disclosure could be related to OpenAI’s plans for an initial public offering.
KeyBanc analyst Jackson Ader said an important unanswered question is how much of OpenAI’s contribution came from the revenue-sharing agreement and how much came from cloud computing or other Microsoft services. “The more of this revenue that comes from Microsoft providing services to OpenAI, rather than investment gains, the more positive my view would be,” he said.