● Covered by 1 source · 1 reportMedium impact1 neutral
Microsoft Reports $10 Billion Revenue from OpenAI in Q1 FY27
Key points
- Microsoft recorded $10 billion in revenue from OpenAI in Q1 FY27.
- This revenue accounted for nearly 11% of Microsoft's total quarterly revenue.
- Microsoft's ownership stake in OpenAI decreased from 25% to 24%.
- OpenAI committed to buying an additional $250 billion in Azure services.
Microsoft's Q1 FY27 Revenue from OpenAI
Microsoft reported $10 billion in revenue from its commercial arrangements with OpenAI for the quarter ending September 30, 2026. This figure represents nearly 11% of Microsoft's total quarterly revenue of $92.3 billion. For the full fiscal year 2026, revenue from OpenAI reached $24.1 billion.
Financial Ties and Receivables
The reported revenue includes payments from revenue-sharing agreements and potentially Azure cloud computing services. Microsoft also disclosed $7.2 billion in outstanding receivables from OpenAI at the end of September, an increase from $6 billion at the end of June, representing amounts owed for past transactions.
OpenAI reportedly shares 20% of its revenue with Microsoft as part of an earlier investment deal. An April 2026 agreement extends this revenue-sharing through 2030, subject to a cap, even as OpenAI gains flexibility to work with other cloud providers.
Evolving Partnership Dynamics
The financial reporting occurs as the partnership between Microsoft and OpenAI evolves. In October 2025, Microsoft loosened its exclusive hold on OpenAI, allowing the startup more freedom to partner with competing cloud providers. In exchange, OpenAI committed to purchasing an additional $250 billion in Azure services.
Microsoft's ownership stake in OpenAI also saw a slight decline, moving from approximately 25% in June to 24% in September, continuing a gradual reduction from about 27% after a recapitalization in October 2025.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
Microsoft generated $10 billion in revenue from commercial arrangements with OpenAI in the quarter ending September 30, 2026, representing nearly 11% of Microsoft's total quarterly revenue. This financial reporting highlights the significant and ongoing financial relationship between the two companies despite increasing competition and loosened partnership terms.