Microsoft Rides on OpenAI's Spending Spree

Microsoft's commercial arrangements with OpenAI have generated $24.1 billion in revenue for the company, accounting for about 7% of its total revenue in fiscal 2026.

The ChatGPT maker is also a significant contributor to Microsoft's backlog, with contracted future revenue growing 84% year over year to reach $678 billion by June 30.

However, OpenAI has been burning through cash at an alarming rate, with estimates suggesting it will burn through almost $280 billion from 2026 to 2030.

This raises concerns about the sustainability of Microsoft's growth story, which relies heavily on Azure's cloud computing platform and its partnership with OpenAI.