Microsoft's AI Sales Rely Heavily on Partnership with OpenAI

Microsoft's artificial intelligence revenue is heavily reliant on its partnership with OpenAI. The software giant recorded US$24.1 billion in sales from the AI firm during the latest fiscal year, which ended in June.

This disclosure suggests that OpenAI accounted for more than half and likely about 70% of Microsoft's actual AI sales during this period.

Under an agreement between the two companies, OpenAI pays Microsoft for computing power, costs associated with building AI models, and a share of its revenue.

The relationship is not without scrutiny, as investors have questioned how much of Microsoft's revenue comes from OpenAI. Bloomberg's analysis assumes that Microsoft's annual AI run rate continued growing at the rapid 123% it reported for March.