Microsoft's AI Revenue Largely Driven by OpenAI
Microsoft's AI Sales Mostly Come from OpenAI, Disclosures Show
New disclosures reveal that Microsoft's AI sales are heavily dependent on OpenAI, with $24.1 billion in revenue from the AI firm in the fiscal year ending June. CEO Satya Nadella had earlier projected $37 billion in annual AI revenue, but the company did not update this figure in its latest earnings report.
Microsoft Corp. generates most of its artificial intelligence revenue from OpenAI, according to new disclosures from the company.
- browningstreet
My enterprise is deep into Microsoft AI but has essentially paused a lot of activity because Microsoft can’t explain their pricing model. They literally said that in a meeting.
So in a company with 10Ks of employees, that is willing to give everyone AI licenses, we can’t really build apps or agents with AI because we have no forecasting guidance on token costs over time.
Not sure how Microsoft thinks customers will react to that, but I know how ours did. The product was sold, and it’s now sitting on the shelf.
- sirjaz
AI build out is just a way for cloud providers to keep customers since you can't get hardware for your own on-prem setup
- mapping365
It's all fugazi.