Microsoft reports $24.1B revenue from OpenAI in 2026 10-K

The disclosure in Microsoft's 10-K reveals the scale of its OpenAI relationship, but the absence of a profit figure casts doubt on whether the AI buildout is producing returns or just moving cash among partners. The $24.1 billion revenue includes economics from the broader partnership, not just Azure sales, and Microsoft also holds an around 25% interest in OpenAI on an as-converted basis, receiving revenue-sharing payments. This complexity means investors should not treat every OpenAI dollar as high-margin software revenue. Microsoft Cloud gross margin fell to 66% as costs from data centers, server components, depreciation, and financing structures arrive alongside revenue. The strategic logic remains powerful—Microsoft funds and supplies infrastructure to a leading AI lab, gains access to its IP, sells cloud capacity, and participates financially in its growth—but the margin quality is the critical unknown. The $24.1 billion answers whether OpenAI is financially material; it does not answer how much profit Microsoft actually keeps.