Microsoft generated $10 billion in revenue from its business with OpenAI last quarter, accounting for nearly 11% of its $92.3 billion in total quarterly revenue, the company said in a 10-Q filing on Wednesday.
The U.S.-based tech giant first reported $24.1 billion in annual OpenAI revenue in July, but had not previously disclosed a quarterly total.
According to the filing, the $10 billion figure includes revenue-sharing payments and other transactions involving OpenAI's use of Microsoft's Azure cloud services to train and run AI models. Microsoft did not disclose how much came from each source.
Notably, the revenue from OpenAI surpassed Xbox at $5.4 billion and Windows OEM and devices at $3.6 billion in the same quarter. Search and advertising brought in $6.6 billion.
Microsoft said Azure revenue rose 48% to $33.2 billion, beating its own forecast of 44% to 45% growth. The company also reported $7.2 billion in outstanding receivables from OpenAI at quarter's end, up from $6 billion at the end of June.
"It was a fast start to our fiscal year," Microsoft CEO Satya Nadella said in an X post. "Lots of innovation as we build the new tech stack for the agentic wave."
Microsoft owns about 24% of OpenAI - down from roughly 25% in June - and has invested $12 billion of a promised $13 billion, according to the filing.
The company has spread its AI bet beyond OpenAI. In addition to building its own MAI-Base-2 model family, the tech giant had committed billions of dollars to a U.K. data center before reportedly backing out of the deal.
In July, the company said it was setting up a new organization with $2.5 billion and 6,000 employees to help businesses deploy AI. The initiative would allow clients to choose models from Microsoft, OpenAI, Anthropic, and other providers.