OpenAI accounted for likely 70% of Microsoft’s AI sales, disclosures show

Published Thu, Aug 6, 2026 · 09:38 AM

[SAN FRANCISCO] Microsoft generates most of its artificial intelligence revenue from OpenAI, according to new disclosures from the company. 

The software giant recorded US$24.1 billion in sales from the AI firm during the year ended in June, Microsoft said in a filing last week.

Microsoft chief executive officer Satya Nadella said the company was on pace at the end of the March quarter to record US$37 billion in revenue over the course of a full year.

Microsoft did not update the total AI sales figure when it reported fiscal fourth quarter earnings last week. 

The disclosure suggests that OpenAI accounted for more than half, and likely about 70 per cent, of Microsoft’s actual AI sales during its most recent fiscal year – highlighting how dependent Microsoft remains on its close partner.

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.

Microsoft has tried to become less reliant on its partner, backing Anthropic and developing its own models. But investors charting Microsoft’s progress in AI have continued to question how much of its revenue is generated by OpenAI.

Bloomberg’s analysis assumes that Microsoft’s annual AI run rate continued growing at the rapid 123 per cent the company reported for March.

At that growth rate, the company’s AI business would have tallied roughly US$34 billion in the fiscal year ending in June, which can be directly compared with the new disclosure that OpenAI provided US$24.1 billion of revenue in that year.

Microsoft has only disclosed its total AI business twice.

Once for the quarter ending in December 2024, when the company said the unit was on pace to generate more than US$13 billion in sales over a year.

And in the quarter ending in March, when Microsoft said it was on track to produce more than US$37 billion.

The total AI business includes all revenue from AI customers and AI-specific product sales to any customer. A company spokesperson confirmed the figure includes all sales and revenue share from OpenAI.

OpenAI’s share of Microsoft’s business looks much smaller – less than 10 per cent – when set against total revenue.

The company said it added about US$51 billion of commercial bookings in its most recent quarter, driven by customers besides AI startups. Still, OpenAI made up most of annual bookings growth.

Until last week, Microsoft had never clearly released its full revenue from OpenAI. The disclosure may be tied to OpenAI’s plans for an initial public offering, Olga Usvyatsky, an accounting researcher and founder of data analytics firm Nonlinear Analytics, wrote in a note. 

One big remaining question is how much of OpenAI’s contribution comes from the revenue-sharing agreement versus cloud computing or other Microsoft services, said KeyBanc analyst Jackson Ader.

“The more of that revenue comes from services to OpenAI rather than the benefits of investment, the more favourably I’m going to look at it,” he said. BLOOMBERG