Microsoft's AI revenue reportedly depends on OpenAI for 70% of $24.1 billion AI business in FY2026.

Most of Microsoft's AI revenue comes from OpenAI, according to new disclosures. Bloomberg reports the figure at $24.1 billion during the fiscal year ending in June, representing roughly 70 percent of Microsoft's total AI revenue. CEO Satya Nadella stated in late March that the AI business was on track to top $37 billion annually. Under their agreement, OpenAI pays Microsoft for computing power, model development costs, and receives a revenue share.

This heavy reliance shapes Microsoft's recent public positioning. The company, historically known for aggressive vendor lock-in strategies, has begun championing open-weight models and warning against a concentration of AI value in a handful of proprietary systems. Nadella has been particularly vocal in criticizing AI labs like OpenAI and Anthropic for opposing "distillation"—the practice of training new models on proprietary model outputs to build competitors with reduced effort. Chinese manufacturers have reportedly been especially aggressive in pursuing this approach.

Meanwhile, Microsoft has been systematically integrating its own AI models across its Office product suite, gradually reducing its dependence on external solutions.