Bigger than Bing or Xbox: Microsoft’s OpenAI haul reaches $10B in quarterly revenue
OpenAI generated $10 billion in revenue for Microsoft in Q2 fiscal 2025 (quarter ended Sept 30), representing approximately 11% of Microsoft's total revenue. This marks a sharp increase from the previous fiscal year's average of $6 billion per quarter. The revenue includes both OpenAI revenue-sharing payments and other business between the companies, such as OpenAI's use of Azure infrastructure. The total now surpasses Xbox ($5.4B) and Windows device revenue ($3.6B) for the quarter. Microsoft's overall Azure revenue grew 48% to $33.2 billion, beating forecasts.
Key points
- OpenAI business hit $10B quarterly revenue, up from ~$6B average in prior year
- Now exceeds Xbox ($5.4B) and Windows device revenue ($3.6B)
- Represents 11% of Microsoft's total quarterly revenue
- Azure grew 48% to $33.2B, partly driven by AI demand
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