Microsoft discloses $10 billion in quarterly revenue from OpenAI for the first time

Microsoft recorded $10 billion in revenue from its business with OpenAI in the quarter ended September 30, according to its quarterly filing released on October 28. GeekWire calculated the figure at about 11% of Microsoft's total revenue. Microsoft had previously disclosed the number only as an annual total; this is the first time it has given a quarterly figure.

The amount is up sharply. In the fiscal year that ended in June, Microsoft recorded $24.1 billion in revenue from OpenAI, or about $6 billion a quarter on average. The new figure surpasses some of Microsoft's longest-running businesses: in the quarter, Xbox brought in $5.4 billion, search and advertising including Bing $6.6 billion, and Windows OEM licenses plus Surface and other devices $3.6 billion.

The total covers revenue-sharing payments from OpenAI and other business between the companies, such as OpenAI's use of Azure to train and run its models. Microsoft did not break out the components or say how much of Azure's growth came from OpenAI. Revenue Microsoft earns from its own customers through Azure OpenAI Service and Copilot is not included. Azure revenue rose 48% to $33.2 billion, beating Wall Street expectations and the company's own 44%–45% growth forecast.

Microsoft reports the figure because its stake of about 24% makes OpenAI a related party under accounting rules. The stake was about 25% in June and about 27% after OpenAI's restructuring a year ago; Microsoft has invested $12.0 billion of a promised $13.0 billion. OpenAI committed in October 2025 to buy an additional $250 billion of Azure services, and an April 2026 agreement gave it broader freedom to use other cloud providers while continuing revenue sharing with Microsoft through 2030.

On the earnings call, CEO Satya Nadella did not address the 11% figure directly but said he does not want Azure's AI business to depend on a few large customers, adding that with coding agents customers want Anthropic and OpenAI "to compete for your workload, not like once a quarter, but for every task." Microsoft also expanded a risk warning in its filing, saying it has "limited visibility into or control over" how outside AI models it relies on are designed, trained, secured and tested.

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Sources: GeekWire, TechCrunch, Microsoft Investor Relations. Image: GeekWire