Microsoft says OpenAI brought it $10 billion in one quarter and reports Azure revenue in dollars for the first time
Revenue from OpenAI arrangements was nearly 11% of Microsoft's record $92.3 billion quarter. Azure brought in $33.2 billion, up 48%.
In a regulatory filing on Wednesday, Microsoft said it earned $10 billion from commercial arrangements with OpenAI, including revenue-sharing payments, in the quarter ended September 30. That is the first quarter of Microsoft's fiscal 2027 and nearly 11% of its total quarterly revenue of $92.3 billion. Revenue from OpenAI was $24.1 billion for all of fiscal 2026. OpenAI owed Microsoft $7.2 billion in receivables at the end of September, up from $6 billion at the end of June. The filing does not say how much came from revenue sharing and how much from Azure cloud services. Microsoft also gave Azure's quarterly revenue in dollars for the first time: $33.2 billion, up 48% from a year earlier and above analysts' expectation of $32.3 billion. Alphabet reported $30.7 billion for Google Cloud in the same quarter, but by TechCrunch's calculations Google Cloud grew about twice as fast. Total revenue rose 19%, Microsoft's tenth record quarter in a row. Net income was $36.6 billion, Microsoft Cloud brought in $63.9 billion, and Devices and Consumer revenue fell 3% to $15.5 billion. The numbers show how much Microsoft still earns from OpenAI even as the two companies increasingly compete for the same customers, and they give investors a direct way to compare Azure with its cloud rivals.