Microsoft’s fiscal year 2026 AI revenue reached approximately $34 billion, with OpenAI accounting for about $24.1 billion, or nearly 70% of that total, according to company disclosures [1, 2, 3]. This represented about 7.3% of Microsoft’s overall $331.8 billion revenue for the fiscal year ended June 2026 [3].

The March 2026 quarter saw Microsoft’s AI business grow at a 123% annual rate, with CEO Satya Nadella stating the company was on pace to generate $37 billion in AI revenue for the full year based on that quarter’s results [2, 3]. Microsoft’s AI revenue run rate reached $37 billion annualized as of that quarter [2, 3].

OpenAI pays Microsoft for Azure computing, AI model training, and shares revenue under their partnership agreement [1, 2, 3]. Some sources highlight that a large portion of Microsoft’s disclosed AI revenue represents OpenAI’s spending on Microsoft’s cloud infrastructure packaged as revenue, illustrating deep financial ties between the two companies [1, 3].

Despite the strong revenue relationship, estimates suggest OpenAI is still losing between $10 billion and $20 billion annually on $2 billion to $5 billion in direct revenue [1]. Microsoft meanwhile has sought to diversify its AI revenue sources by backing other AI firms such as Anthropic and developing its own AI models [2, 3].

Microsoft’s AI revenue growth has boosted its stock, with shares surging nearly 30% in July 2026 amid accelerating demand for AI products and services [1]. Its Microsoft 365 Copilot AI assistant has attracted millions of paid seats, with adoption spanning government, public, and private sectors [1].

Microsoft also reported strong financial performance in its AI business despite increased capital expenditures for data centers [1]. This indicates the company is investing heavily in infrastructure to support future growth.

OpenAI’s contribution remains the dominant driver of Microsoft’s AI revenue, with $24.1 billion recognized in fiscal 2026 [2, 3]. Microsoft will continue to monitor AI revenue performance in upcoming quarters to assess growth sustainability in this key strategic area.