Microsoft Discloses $13 Billion Investment in OpenAI, Impacting Profits

Microsoft's financial filings reveal significant investments in OpenAI, contributing to both growth in AI revenue and increased expenses.

Microsoft has committed $13 billion to OpenAI, with an additional $750 million invested in October, as revealed in recent financial disclosures.
The investment is causing a $1.5 billion hit to Microsoft's income this quarter due to OpenAI's projected $5 billion loss this year.
Despite the financial impact, Microsoft's AI business is thriving, with AI services contributing significantly to Azure's revenue growth.
Microsoft's partnership with OpenAI has evolved, now including equity investments, marking a shift from previous 'soft money' contributions.
The collaboration remains strong, though Microsoft is also exploring partnerships with other AI firms like Anthropic and Google.