Microsoft's financial report revealed OpenAI's financial data: a massive quarterly loss of $11.5 billion.

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Microsoft’s latest financial report unexpectedly disclosed OpenAI’s financial status, showing that this AI star company may have incurred a massive loss of over $11.5 billion in a single quarter. This figure far exceeds market expectations and highlights the rapid burn rate in the field of artificial intelligence.

In its quarterly report ending September 30, Microsoft revealed that its equity-method investment in OpenAI led to a $3.1 billion reduction in net profit. Based on Microsoft’s roughly 27% equity stake in OpenAI, this means OpenAI’s net loss for that quarter was about $11.5 billion. Considering the pre-tax loss and previously higher stake, the actual loss could exceed $12 billion.

This scale of loss stands out in comparison to OpenAI’s revenue of just $4.3 billion in the first half of this year. However, for Microsoft, this loss remains within a bearable range. Microsoft has currently invested $11.6 billion into OpenAI, which accounts for most of its $13 billion promised investment.

Analysts point out that this disclosure provides a rare window into the financial status of an AI unicorn company, and also reflects the significant financial burden large tech companies take on to maintain their AI competitive edge.

Equity Method Accounting Reveals True Losses

Microsoft stated clearly in its SEC filings that its investment in OpenAI adopts equity method accounting, which means OpenAI’s profits or losses directly affect Microsoft’s net income. This accounting method applies to situations in which a company holds significant but non-controlling equity in another company.

The filing shows Microsoft has committed to invest $13 billion into OpenAI, with $11.6 billion actually invested as of September 30. Unlike fair value accounting, the equity method directly reflects the actual operating results of the investee company, not changes in market valuation.

According to the latest disclosure, Microsoft currently holds a 27% stake in OpenAI. Based on the equity method principle, the $3.1 billion loss Microsoft shouldered corresponds to about $11.5 billion in OpenAI’s quarterly net loss.

The Loss Could Be Even More Astonishing

The actual loss may be higher than $11.5 billion. On page 37 of Microsoft’s SEC filing, its pre-tax net loss was actually $4.1 billion, not the $3.1 billion after-tax loss.

According to media reports, Microsoft’s actual shareholding in OpenAI during the quarter was 32.5%, not 27% after OpenAI converted to a for-profit company.

Calculating according to a 32.5% stake and a $4.1 billion pre-tax loss, OpenAI’s quarterly loss could exceed $12 billion.

This scale of loss is especially large compared to OpenAI’s revenue. The company’s revenue in the first half of this year was only $4.3 billion, meaning that its single-quarter loss was nearly three times its half-year revenue.

The AI Investment Burden for Major Tech Companies

Despite the huge losses at OpenAI, the impact on Microsoft’s overall financial position is limited. According to previous reports from Wallstreetcn, Microsoft’s net profit last quarter reached $27.7 billion, enough to absorb the investment loss.

Microsoft’s financial results also show that the loss related to its OpenAI investment for the same period last year was $523 million; this year’s $3.1 billion loss indicates OpenAI’s cash burn rate has greatly accelerated.

This disclosure confirms that the major tech companies are providing funding for the AI bubble, and still have sufficient resources to maintain this high-intensity investment.

Microsoft made no further comment on the financial data, only confirming that the $3.1 billion loss refers to the current fiscal year starting July 1, not the calendar year, so this is a single-quarter rather than nine-month loss.

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