Microsoft Reports $10 Billion in OpenAI Revenue and Reveals Azure’s Quarterly Sales

Microsoft reported Azure revenue of $33.2 billion for the July–September quarter, up 48% from a year earlier, disclosing quarterly revenue in dollars for the first time. Azure accounted for roughly 36% of Microsoft’s $92.3 billion in quarterly revenue. Alphabet reported Google Cloud revenue of $30.7 billion for the same quarter, including Workspace subscriptions, with revenue roughly doubling year over year, according to TechCrunch’s calculations.

Microsoft reported $10 billion in revenue from commercial arrangements with OpenAI in the quarter ended September 30, nearly 11% of its $92.3 billion quarterly revenue. The filing also listed $7.2 billion in outstanding receivables from OpenAI, representing money owed for previous transactions rather than additional revenue. The split between revenue-sharing payments and Azure services was unclear.

Microsoft reported quarterly revenue of $92.3 billion, up 19% from a year earlier, marking its 10th consecutive record quarter. Net income rose 32% on a GAAP basis to $36.6 billion, while Microsoft Cloud revenue increased 30% to $63.9 billion, including $10 billion in revenue from OpenAI. Commercial remaining performance obligations rose 73% to $677 billion, while capital expenditures reached a quarterly record of $45.2 billion.