Microsoft quarterly report reveals double-digit billion loss at OpenAI
In the report, Microsoft deducts part of OpenAI's loss from its own revenue. The AI manufacturer is apparently making large losses.
(Image: Camilo Concha / Shutterstock.com)
AI manufacturer OpenAI has apparently recorded a loss in the double-digit billions in the third quarter. This is suggested by Microsoft's current quarterly report. The loss at OpenAI could amount to up to 12.1 billion US dollars.
Although OpenAI itself is not listed on the stock exchange and therefore does not publish financial reports. This is different for listed investors like Microsoft. The company holds 27 percent of OpenAI; in the current quarterly report, Microsoft therefore also communicates publicly about the status of its OpenAI investment.
Microsoft includes OpenAI losses
According to this, Microsoft has given a total of 11.6 billion US dollars of the total promised 13 billion US dollars in capital for OpenAI by September 30, 2025, as the company writes on page 9 of the report. Microsoft accounts for its stake in the AI manufacturer using the equity method, whereby profits or losses of an investee company are directly included in its revenues or expenses.
In OpenAI's case, unfortunately, there are losses: The net profit and diluted earnings per share for the current year have been negatively impacted by net losses from investments in OpenAI, leading to a decrease in net profit and diluted earnings per share by 3.1 billion US dollars and 0.41 US dollars, respectively, Microsoft explicitly writes on page 33 of the quarterly report. Microsoft itself made a quarterly profit of 27.7 billion US dollars, and in its past fiscal year, the company first exceeded the mark of 100 billion dollars in annual profit.
Significantly deeper in the red than in the previous year
Tech startups like OpenAI are often not profitable in their early years. But in the quarter in question, the extent is enormous when comparing the current losses reported by Microsoft with the same quarter of the previous year. At that time, Microsoft still reported a decrease in net profit by 523 million US dollars, or seven US cents of diluted earnings per share, also to be read in the current quarterly report.
Of course, only the percentage share of OpenAI's total quarterly losses that Microsoft holds in the AI manufacturer's company shares is included in this calculation. This amounts to 27 percent. Projected, this would mean that OpenAI made a total loss of 11.5 billion US dollars in this quarter. The tech portal The Register confirmed to Microsoft upon inquiry that the Microsoft figures relate to the current fiscal year, which started on July 1. The Register wanted to ensure that the figures really relate to the quarterly period up to September 30. Before tax deductions, Microsoft reports the loss from the OpenAI investment with the sum of 4.1 billion US dollars (Non-GAAP, see page 37 of the quarterly report).
Microsoft's stake recently changed
There are also higher estimates for OpenAI's quarterly loss. The Wall Street Journal assumes a loss of around 12 billion. The author attributes this to the size of Microsoft's stake, which has changed due to a restructuring of parts of OpenAI from a non-profit structure to a for-profit structure. In the pure non-profit structure, Microsoft still held 32.5 percent of the company shares, now only 27.5 percent.
Since OpenAI itself does not publish financial reports, the figures cannot be viewed in relation to other business metrics. The company has not yet commented on inquiries from various media outlets. However, CEO Sam Altman is likely to view the high losses calmly if his statements at a Stanford University event last year are to be believed.
Videos by heise
The moderator wanted to know from him how OpenAI intends to monetize considering the high operating expenses. Altman initially referred to OpenAI's approach of making its AI models available to the world as early as possible and gradually establishing its technology. Whether the company is now burning 500 million per year, or five billion, or 50 billion is irrelevant to him. “I really don't care, as long as I think we're on a path where we ultimately create a lot more value for society,” he explained, referring to the development of general artificial intelligence. That is absolutely worth it—“as long as we find a way to pay the bills.” See also minute 11:53 of the recording:
Empfohlener redaktioneller Inhalt
Mit Ihrer Zustimmung wird hier ein externer Inhalt geladen.
Ich bin damit einverstanden, dass mir externe Inhalte angezeigt werden. Damit können personenbezogene Daten an Drittplattformen übermittelt werden. Mehr dazu in unserer Datenschutzerklärung.
(nen)
