Microsoft Hides Profit Margins on $24B OpenAI Deal
Microsoft has disclosed that it generated $24.1 billion in revenue from its commercial arrangements with OpenAI in fiscal year 2026, which ended on June 30. This figure is substantial and highlights the significant financial relationship between the two companies.
The revenue-sharing payments from OpenAI to Microsoft are just one aspect of their partnership, as Microsoft owns approximately a 25% interest in OpenAI on an as-converted basis. The company continues to receive revenue-sharing payments while supplying infrastructure and accessing OpenAI's intellectual property for its own products.
While the $24.1 billion figure is impressive, what remains unknown is the profit margin on these arrangements. Microsoft has not disclosed this information, which may carry significant consequences for investors trying to evaluate whether the AI buildout is generating real returns or simply shuffling capital between strategic partners.