Microsoft raised $7.6B from OpenAI last quarter

Microsoft and OpenAI can have it common sense agreement but as OpenAI experiences unprecedented investment growth, Microsoft, one of its biggest investors, is reaping the benefits.

When giant programs report In its most recent earnings report on Wednesday, it posted the biggest gain: Its net income rose by $7.6 billion from its sale of OpenAI.

OpenAI he says they have a 20% revenue sharing deal with Microsoft (although neither company has ever confirmed this publicly). The software giant has invested more than $13 billion in the AI ​​lab, which is currently looking to raise additional capital for between $750 billion and $830 billion, Bloomberg said.

In September, Microsoft and OpenAI renegotiated some of their actions when OpenAI was converted into a partnership. public benefit corporation.

As part of the deal, OpenAI agreed to buy another $250 billion worth of Azure services. That commitment is evident Microsoft Books such as “remaining commercial services,” or contracts Microsoft has that have not been paid for. These positions rose to $625 billion from $392 billion in the previous quarter. Microsoft said 45% of that is from OpenAI.

Anthropic got a shout in the quarter’s earnings, too, by helping to boost Microsoft’s expected future revenue from the booking system, which grew 230%. In November, Microsoft he announced that it is selling $5 billion to Anthropic and the AI ​​lab signed $30 billion of Azure compute capacity, with the intention of buying more later.

But Microsoft is also spending a lot of money to feed AI machines. It spent $37.5 billion in the quarter on capital expenditures, two-thirds of which were for what Microsoft called “temporary”: mainly GPUs and CPUs for its Azure cloud to serve AI.

The company reported $81.3 billion in revenue (Wall Street analysts were expecting $80.27 billion, so that’s a solid hit), up 17% over the previous year. Its Microsoft Cloud revenue hit $50 billion this quarter for the first time. All of Microsoft’s business units were up 2% on the prior year quarter except for Windows devices, which gained 1% (in real terms), and Xbox which included services, which fell 5%.