In a recent regulatory submission, Microsoft disclosed that it earned $10 billion through its commercial dealings with OpenAI for the quarter ending September 30. This figure accounts for nearly 11% of Microsoft’s total quarterly revenue, which stands at $92.3 billion, emphasizing the significant financial relationship between the two entities despite their growing competition for similar clientele.
(Microsoft’s fiscal year starts in July, making the quarter that concluded on September 30, 2026, the inaugural quarter of its fiscal 2027.)
Throughout the entire fiscal year of 2026, Microsoft reported $24.1 billion in earnings linked to OpenAI. If the current trends continue, the company could potentially generate $40 billion annually from these arrangements.
Additionally, Microsoft noted an increase in receivables from OpenAI, which reached $7.2 billion at the end of September, up from $6 billion at the end of June. This amount represents debt owed by OpenAI for prior transactions rather than new revenue.
The specific breakdown of Microsoft’s revenue from OpenAI, particularly the contributions from revenue-sharing arrangements or Azure cloud computing services, remains unclear. In November 2025, it was reported that Microsoft accrued $865.8 million in net revenue-sharing from OpenAI during the year’s first three quarters, according to leaked documents.
It is reported that OpenAI allocates 20% of its revenue to Microsoft as part of a prior agreement stemming from Microsoft’s investment of over $13 billion into the AI company. Both Microsoft and OpenAI have not publicly verified this percentage. Under a deal signed in April 2026, OpenAI is obligated to continue sharing revenue with Microsoft until 2030, up to a certain limit, even as it engages with other competing cloud service providers.
The partnership began to shift in October 2025 when Microsoft eased its exclusive control over OpenAI, allowing the startup greater freedom to form alliances with additional cloud service providers. In return, OpenAI agreed to purchase an extra $250 billion worth of Azure services as part of their October 2025 agreement.
Microsoft’s ownership stake in OpenAI has seen a slight dip, decreasing from approximately 25% in June to 24% in September. This trend continues a gradual reduction from around 27% following a recapitalization in October 2025. The exact reasons for this dilution were not provided by Microsoft.
