Microsoft filings suggest "around 70%" of its AI revenue is on OpenAI

Posted by speckx 14 hours ago

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Comments

Comment by DeepLogin 14 hours ago

How much would Microsoft save by switching to open source AI?

I am asking because they seem to be looking forward to this as soon as possible.

Relevant links:

- https://news.microsoft.com/source/2026/07/21/microsoft-and-m...

- https://www.microsoft.com/en-us/corporate-responsibility/top...

Comment by kylecazar 14 hours ago

This article is about OpenAI as a significant MSFT customer.

"it shows that GPU and infrastructure consumption specifically from OpenAI still drives between 65 to 70% of Microsoft's total AI business"

Comment by DeepLogin 14 hours ago

I feel lost here.

Isn't Microsoft Copilot based on OpenAI AI models like ChatGPT?

Does the disclosure that is refranced in the Bloomberg analysis that the article is based on take this in consideration?

Comment by kylecazar 13 hours ago

Yeah, the arrangement between OpenAI and MSFT is complex and a pretty good example of the circular deals that are becoming more common.

Microsoft was an early large investor in OpenAI. They get priority access to the models, and can use them in their products for the next 8 years as a result. They still use OAI for most (Copilot etc), but incorporate others these days as well. Not open source like you suggest AFAIK, but their own proprietary models.

OpenAI builds and serves their models on Azure (partly), and pays MSFT to do so. This used to be a contractual obligation, but no longer is. This article is about just how important that payment is/was to MSFT's AI business, implying it would be devastating if OpenAI chose to wind down their Azure spend and go with another provider.

That's my understanding of the situation.

Comment by halJordan 8 hours ago

The msft-openai tie-up is probably the least concerning of the "circular" deals since it's a natural outgrowth of a rather pedestrian investment/incubation. I'm not saying you're saying that, just pointing it out.

Comment by giancarlostoro 14 hours ago

Microsoft was the exclusive way to have your own copy of GPT in the cloud for a few years, and they have been the primary host for OpenAI, including their training infrastructure early on.

Comment by jadbox 14 hours ago

How does Microsoft make revenue from openai when it doesn't get to use those profits as an org?

Comment by pera 14 hours ago

Azure has a lot of GB300s:

https://blogs.nvidia.com/blog/microsoft-azure-worlds-first-g...

Comment by slackfan 14 hours ago

Hosting.

Comment by torh 13 hours ago

Ed Zitron wrote about this (at length) earlier this week: <https://www.wheresyoured.at/the-ai-demand-bubble/#analysts-e...>

Comment by 2OEH8eoCRo0 13 hours ago

And where did OpenAI get that money to spend?

Comment by ChrisArchitect 13 hours ago

[dupe] https://news.ycombinator.com/item?id=49186766