Microsoft discloses $10B in quarterly revenue from OpenAI

Microsoft made $10 billion in revenue from its business with OpenAI in the quarter ended Sept. 30, according to a regulatory filing on Wednesday, Oct. 28. That works out to nearly 11% of the company's $92.3 billion in total quarterly revenue. The same filing showed Microsoft's stake in the ChatGPT maker slipping to about 24%. That is down from about 25% in June and roughly 27% after OpenAI's restructuring a year ago.geekwire.com+1

This is the first time Microsoft has given a quarterly figure. It first disclosed OpenAI revenue in its July annual report as a full-year total of $24.1 billion, or about $6 billion a quarter on average. The company is required to report the figure because its ownership stake makes OpenAI a "related party" under accounting rules.geekwire.com

Bigger than Xbox and Bing

The $10 billion is more than some of Microsoft's oldest businesses brought in. In the same quarter, Xbox made $5.4 billion, search and advertising made $6.6 billion, and Windows OEM licensing plus devices made $3.6 billion. The total includes OpenAI's revenue-sharing payments and its spending on Azure, but Microsoft did not say how much came from each. At the end of September, OpenAI owed Microsoft $7.2 billion in receivables, up from $6 billion in June.techcrunch.com+1

The disclosure came with Microsoft's fiscal first-quarter results. Revenue rose 19% and net income rose 32% to $36.6 billion. Azure revenue grew 48%, and commercial remaining performance obligations jumped 73% to $677 billion. Microsoft shares rose in extended trading after the results.news.microsoft.com+1

A loosening partnership

The two companies have been loosening their ties. In October 2025, OpenAI restructured as a public benefit corporation and committed to buy an additional $250 billion in Azure services. An April 2026 agreement gave OpenAI more freedom to use rival cloud providers, while keeping its revenue-sharing payments to Microsoft in place through 2030. Those payments are subject to a cap. Microsoft has now put $12 billion of its promised $13 billion into OpenAI. Its quarterly filing also added a warning that AI partners who are "significant customers of Azure" could change how much they buy.techcrunch.com+1

On the earnings call, CEO Satya Nadella played down reliance on a handful of large buyers. He said he wanted growth from a broad base of business customers rather than "four customers who buy a lot of capacity from you," adding, "That's not a business, as far as I'm concerned".nytimes.com