Microsoft's financial disclosures show how OpenAI is fueling …

Oct 31, 2024 · The new disclosures by Microsoft about OpenAI follow reports of tensions between the companies, and signs that Microsoft is hedging its bets — partnering, for example, with Anthropic and Google ...

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Why Microsoft's $13 Billion Investment In OpenAI Was Brilliant

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Nov 10, 2024 · But Microsoft's investment in OpenAI is still (arguably) some of the best money ever spent. Microsoft effectively paid $13 billion for a 49% profit-share agreement with an AI …

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How Microsoft Sustains Market Leadership (NASDAQ:MSFT)

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5 hours ago · Investment Thesis. Microsoft's (NASDAQ: MSFT) Q1 2025 results showcase robust 16% year-over-year (YoY) revenue growth, driven by Azure's 33% expansion and increasing …

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Microsoft And OpenAI Are Weighing The Value Of $14 Billion.

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Oct 18, 2024 · Microsoft is figuring out how its $14 billion investment in OpenAI will translate into equity when the AI startup transitions into a for-profit company (this transition must occur …

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Microsoft And OpenAI’s Close Partnership Shows Signs Of Fraying

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Oct 17, 2024 · Over the next few months, Microsoft wouldn’t budge as OpenAI, which expects to lose $5 billion this year, continued to ask for more money and more computing power to build …

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The $14 Billion Question Dividing OpenAI And Microsoft

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Oct 18, 2024 · OpenAI and Microsoft MSFT 1.25% are facing off in a high-stakes negotiation over an unprecedented question: How should a nearly $14 billion investment in a nonprofit translate …

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FAQs about Microsoft's financial disclosures show how OpenAI is fueling … Coupon?

Did Microsoft disclose an equity investment in OpenAI?

Microsoft disclosed an equity investment in OpenAI for the first time, according to its latest Securities and Exchange Commission filings. On Wednesday, the company released its quarterly results. In legally required disclosures, Microsoft included information about its relationship with OpenAI. ...

Did Microsoft disclose OpenAI investment in 'other income & expense' line item?

Responding to an inquiry from GeekWire, a Microsoft spokesperson confirmed that the company was previously including the impact of the OpenAI investment in the “other income and expense” line item, and decided to start disclosing it explicitly to help investors understand the impact. ...

Does Microsoft's $13 billion funding commitment to OpenAI affect earnings?

Importantly, Microsoft has not yet fulfilled its $13 billion funding commitment to OpenAI, so those investments are currently a headwind to earnings. For instance, the company recorded a $683 million expense related to its share of OpenAI losses in the first quarter of fiscal 2025 (ended September 2024). ...

How much did Microsoft invest in OpenAI global?

"We have an investment in OpenAI Global, LLC ("OpenAI") and have made total funding commitments of $13 billion," Microsoft wrote in the SEC filing on Wednesday. "The investment is accounted for under the equity method of accounting." ...

Did Microsoft make a follow-on investment in OpenAI in 2021?

Microsoft disclosed its initial $1 billion investment in OpenAI in 2019. The announcement today also revealed, for the first time, that Microsoft made a follow-on investment in OpenAI in 2021. The amount wasn’t disclosed. That investment wasn’t announced at the time, and does not appear to have been previously reported. ...

Is Microsoft's new investment in OpenAI immaterial to its business?

We’ve asked Microsoft to explain the basis on which it has determined the new investment in OpenAI to be immaterial to its business, allowing the financial details to go without public disclosure under Securities & Exchange Commission rules. We’ve also contacted the SEC for clarification of the threshold for material disclosures to investors. ...