Leaked documents shed light into how much OpenAI pays Microsoft

Leaked documents expose the financial relationship between OpenAI and Microsoft, revealing staggering revenue shares and compute costs.

**Leaked documents reveal OpenAI's financial dealings with Microsoft, showing a dramatic increase in revenue share payments.** In 2024, Microsoft received $493.8 million from OpenAI, which surged to $865.8 million in the first three quarters of 2025. OpenAI shares 20% of its revenue with Microsoft, but the financial intricacies are complex, with Microsoft also sharing revenue back with OpenAI from services like Bing and Azure. This financial scrutiny comes amid speculation of an impending IPO for OpenAI. The documents highlight the growing financial relationship between the two companies, indicating that while OpenAI is generating significant revenue, its expenses, particularly in compute costs, are also rising sharply. This situation raises questions about the sustainability of OpenAI's business model as it prepares for potential public offerings and seeks to maintain investor confidence.

Revenue Share Dynamics

OpenAI's revenue-sharing agreement with Microsoft is a key aspect of their partnership. According to the leaked documents, Microsoft received $493.8 million in 2024 and $865.8 million in the first three quarters of 2025. This 20% revenue share stems from Microsoft's substantial investment of over $13 billion in OpenAI. However, the situation is complicated by Microsoft's own revenue-sharing model, where it returns about 20% of revenues from services like Bing and Azure OpenAI Service back to OpenAI. Bing, a search engine, is powered by OpenAI's technology, while the Azure OpenAI Service allows developers and businesses to access OpenAI's models through Microsoft's cloud platform. This reciprocal financial arrangement illustrates the intertwined nature of their business operations and highlights the complexities involved in understanding their overall financial health.

Compute Costs on the Rise

OpenAI's spending on inference, the compute required to run AI models, has skyrocketed. In 2024, the estimated spend was around $3.8 billion, which ballooned to approximately $8.65 billion in the first nine months of 2025. This raises concerns about OpenAI's financial sustainability, as it appears the company may be spending more on inference than it earns in revenue. The majority of this spending is cash-based, contrasting with its training costs, which are largely covered by credits from Microsoft. Inference costs are critical because they represent the ongoing expenses associated with operating AI models after they have been trained. As demand for AI services grows, these costs could continue to rise, putting additional pressure on OpenAI's financial resources and its ability to maintain profitability.

Implications for the AI Market

The financial revelations about OpenAI could have broader implications for the AI industry. If OpenAI is indeed operating at a loss while running its models, it raises questions about the valuation and investment strategies for other AI companies. The ongoing AI bubble discussions are likely to intensify as investors reassess the financial health of AI startups in light of these findings. OpenAI's projected revenue growth, potentially exceeding $20 billion annually, contrasts sharply with its current spending patterns. This discrepancy may lead to increased scrutiny of other AI firms, as investors may become more cautious about funding companies that are not demonstrating sustainable financial practices. The situation could reshape the landscape of AI investments, prompting a reevaluation of what constitutes a viable business model in this rapidly evolving sector.

The Future of OpenAI and Microsoft

As OpenAI continues to rely heavily on Microsoft Azure for its compute needs, the partnership's future remains pivotal. OpenAI has also begun exploring other cloud providers like AWS and Google Cloud, but Microsoft remains its primary partner. The financial intricacies of their relationship, including the revenue-sharing model and compute costs, will be crucial as OpenAI navigates its path toward a potential IPO and aims for ambitious revenue targets. The success of this partnership will likely depend on how well both companies can manage their financial commitments and operational efficiencies. As the AI market evolves, the dynamics between OpenAI and Microsoft could set important precedents for future collaborations in the tech industry, influencing how companies approach partnerships and revenue-sharing agreements.

Why it matters

Reveals the financial intricacies of OpenAI's partnership with Microsoft.
Highlights the potential unsustainability of OpenAI's current spending model.
Raises questions about the valuation of AI companies amid ongoing investment scrutiny.
Sheds light on the competitive landscape of cloud services in AI.

Key numbers

$493.8 million - revenue share to Microsoft in 2024
$865.8 million - revenue share to Microsoft in Q1-Q3 2025
$3.8 billion - OpenAI's inference spend in 2024
$8.65 billion - OpenAI's inference spend in Q1-Q3 2025

Context

The leaked documents come at a time when OpenAI is under intense scrutiny as it prepares for a potential IPO, with financial analysts closely watching its revenue and spending patterns.

Leaked documents shed light into how much OpenAI pays Microsoft