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Microsoft and OpenAI may have a notoriously rocky relationship<\/a> but as OpenAI experiences never-before-seen revenue growth, Microsoft, one of its major investors, is benefiting greatly.<\/p>\n When the software giant reported<\/a> its latest quarterly earnings on Wednesday, it dropped this rather large nugget in: Its net income increased by $7.6 billion from its investment in OpenAI.<\/p>\n OpenAI reportedly<\/a> has a 20% revenue share agreement with Microsoft (though neither company has ever publicly confirmed that). The software giant has invested more than $13 billion in the AI lab, which is currently looking to raise additional funding at a valuation between $750 billion and $830 billion, Bloomberg reported<\/a>.<\/p>\n In September, Microsoft and OpenAI renegotiated some of the terms of their deal when OpenAI restructured into a public benefit corporation<\/a>.<\/p>\n As part of that deal, OpenAI agreed to buy another $250 billion of Azure services. That commitment shows on Microsoft\u2019s books<\/a> as \u201ccommercial remaining performance obligations,\u201d or contracts that Microsoft has that have not yet been paid out. Those obligations leaped to $625 billion from $392 billion in the previous quarter. Microsoft said that 45% of that is from OpenAI.<\/p>\n Anthropic got a shout-out in the quarterly earnings, too, in helping boost Microsoft\u2019s anticipated future revenue in the form of commercial bookings, which grew 230%. In November, Microsoft announced<\/a> that it was investing $5 billion into Anthropic and the AI lab had signed up for $30 billion of Azure compute capacity, with intent to buy more later.<\/p>\n But Microsoft is also spending big to feed the AI machine. It spent $37.5 billion in the quarter on capital expenditures, two-thirds of which were for what Microsoft called \u201cshort-lived\u201d assets: primarily the GPUs and CPUs for its cloud Azure to serve AI.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> The company reported $81.3 billion\u00a0in revenue (Wall Street analysts expected $80.27 billion, so that\u2019s a solid beat), up 17% over the year-ago period. Its Microsoft Cloud revenue hit $50 billion this quarter for the first time. All of Microsoft\u2019s business units increased by double-digit percentages over the year-ago quarter with the exception of Windows devices, which gained 1% (essentially flat), and Xbox content and services, which were down 5%.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n