{"id":39204,"date":"2026-05-14T19:47:19","date_gmt":"2026-05-14T19:47:19","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/39204\/"},"modified":"2026-05-14T19:47:19","modified_gmt":"2026-05-14T19:47:19","slug":"microsoft-made-30-billion-from-openai-in-2-years-but-somehow-burned-through-100-billion-in-costs-to-get-there","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/39204\/","title":{"rendered":"Microsoft made $30 billion from OpenAI in 2 years \u2014 but somehow burned through $100 billion in costs to get there"},"content":{"rendered":"

Microsoft\u2019s partnership with OpenAI<\/a> traces back to the Windows Phone era, when CEO Satya Nadella<\/a> was still using the device daily. A screenshot shared by The Verge\u2019s Tom Warren<\/a> shows emails between Sam Altman and Nadella dating to April 7, 2015 \u2014 suggesting the multibillion\u2011dollar alliance may have begun even earlier.<\/p>\n

Nadella later admitted that pulling the plug on Windows Phone was a strategic mistake<\/a>. But I digress… Microsoft is now doubling down on AI<\/a>, integrating the technology across its products and services. This is primarily due to its partnership with OpenAI.<\/p>\n

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Investors have raised concerns about the company’s fixation on AI<\/a>, especially since it’s particularly hard to establish a clear path to profitability. Market analysts predict that investor interest is waning<\/a> after Microsoft lost approximately a quarter of its value in the first three months of 2026, perhaps the steepest quarterly drop ever since the 2008 financial crisis<\/a>.<\/p>\n

You may like<\/p>\n

Yesterday, I reported that Microsoft has generated approximately $30 million in revenue<\/a> since it partnered with OpenAI. But as it now seems, this barely makes a dent in how much it has spent.<\/p>\n

Microsoft corporate development lead Michael Wetter has now confirmed through testimony in the ongoing Musk v. Altman trial that it has spent more than $100 billion on its partnership with OpenAI, largely on infrastructure and hosting costs (via Bloomberg<\/a>).<\/p>\n

\u201cWe needed to build Azure infrastructure in advance of providing those services to OpenAI,\u201d Wetter added. Microsoft incurred most of these costs before receiving any revenue from OpenAI.<\/p>\n

This staggering figure underscores how central OpenAI has become to Microsoft\u2019s AI strategy. In the same breath, it also shows how instrumental Microsoft’s partnership has been to OpenAI’s rapid growth.<\/p>\n

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(Image credit: Getty Images | Justin Sullivan)<\/p>\n

It’s worth noting that the $100 billion mentioned above includes Microsoft’s $13 billion investment in OpenAI <\/a>and is cumulative through the current fiscal year ending June.<\/p>\n

While taking the stand on Monday, Microsoft CEO Satya Nadella indicated that he was \u201cvery proud\u201d that Microsoft took the risk to invest in OpenAI when \u201cno one else was willing\u201d to bet on the ever-evolving technology. Despite doubts from Microsoft co\u2011founder Bill Gates<\/a>, who opposed Satya Nadella\u2019s $1 billion investment in OpenAI in 2019 due to its non\u2011profit structure, the deal went forward.<\/p>\n

Microsoft and OpenAI recently renewed their vows under a new non-exclusive partnership<\/a>, meaning the tech giant will no longer need to pay OpenAI a revenue share. The new deal capped OpenAI’s revenue-sharing payments at $38 billion through 2030, saving it approximately $97 billion when compared to the terms in the original agreement.<\/p>\n

What to read next<\/p>\n

Microsoft is building an OpenAI-free future<\/p>\n

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(Image credit: Getty Images | FABRICE COFFRINI)<\/p>\n

In an exclusive report by Reuters<\/a>, Microsoft is reportedly exploring AI startup acquisitions, potentially emancipating itself from an overreliance on OpenAI to power its tech stack.<\/p>\n

The report suggests that acquisitions will help Microsoft assemble top AI talent, accelerating progress toward developing an in\u2011house model<\/a> as early as next year. The company has already made significant strides, even reassigning AI CEO Mustafa Suleyman to focus on frontier models and the pursuit of superintelligence<\/a>.<\/p>\n

Microsoft reportedly considered acquiring Cursor this spring but backed out, fearing antitrust scrutiny since it already owns GitHub<\/a> Copilot, another code\u2011generation tool.<\/p>\n

The company is exploring a possible acquisition of Inception, a startup developing LLMs with a different approach, though insiders say the deal may never happen.<\/p>\n

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Join us on Reddit at r\/WindowsCentral <\/a>to share your insights and discuss our latest news, reviews, and more.<\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft\u2019s partnership with OpenAI traces back to the Windows Phone era, when CEO Satya Nadella was still using…\n","protected":false},"author":2,"featured_media":39205,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[420,7829,320,7828],"class_list":{"0":"post-39204","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-microsoft","8":"tag-azure","9":"tag-azure-ai","10":"tag-microsoft","11":"tag-microsoft-ai"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/39204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=39204"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/39204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/39205"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=39204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=39204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=39204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}