Microsoft's financial report leaked OpenAI's financial data: a quarterly loss of $11.5 billion

Microsoft's latest financial report unexpectedly disclosed OpenAI's financial status, showing that this AI star company may have suffered a massive loss of over $11.5 billion in a single quarter. This figure far exceeds market expectations, highlighting the ongoing cash burn rate in the artificial intelligence sector.

In its quarterly report for the period ending September 30, Microsoft revealed that its equity method investment in OpenAI resulted in a net profit reduction of $3.1 billion. Based on Microsoft's approximately 27% stake in OpenAI, this means OpenAI's net loss for the quarter is about $11.5 billion. If considering pre-tax losses and a previously higher ownership percentage, the actual loss may exceed $12 billion.

This scale of loss is particularly striking compared to OpenAI's revenue of only $4.3 billion in the first half of this year. However, for Microsoft, this loss is still within a bearable range. Microsoft has currently invested $11.6 billion in OpenAI, accounting for the vast majority of its $13 billion committed investment.

Analysts point out that this disclosure provides a rare window into the financial status of AI unicorn companies and reflects the enormous financial burden that large tech companies bear to maintain their competitive edge in AI.

Equity Method Accounting Reveals True Losses

Microsoft explicitly stated in its SEC filing that its investment in OpenAI is accounted for using the equity method, meaning OpenAI's earnings or losses directly impact Microsoft's net income. This accounting method applies to situations where a company holds a significant but non-controlling stake in another company.

The document shows that Microsoft has committed to investing $13 billion in OpenAI, having actually invested $11.6 billion as of September 30. Unlike the market value accounting method, equity method accounting directly reflects the actual operational performance of the investee company rather than changes in market valuation.

According to the latest disclosure, Microsoft currently holds a 27% stake in OpenAI. Based on the principles of equity method accounting, the $3.1 billion loss incurred by Microsoft corresponds to OpenAI's approximate $11.5 billion net loss for the quarter.

Loss Scale May Be Even More Astonishing

The actual loss may be higher than $11.5 billion. Page 37 of Microsoft's SEC filing shows that its pre-tax net loss was actually $4.1 billion, rather than the after-tax $3.1 billion.

According to media reports, Microsoft's actual ownership percentage in OpenAI for the quarter was 32.5%, rather than the 27% after transitioning to a for-profit company.

Based on a 32.5% ownership stake and a pre-tax loss of $4.1 billion, OpenAI's quarterly loss could exceed $12 billion.

This scale of loss is particularly enormous relative to OpenAI's revenue. The company generated only $4.3 billion in revenue in the first half of this year, meaning the quarterly loss is nearly three times the half-year revenue.

AI Investment Burden of Large Tech Companies

Despite OpenAI's massive losses, the impact on Microsoft's overall financial status is limited. According to a previous article by Wall Street Insights, Microsoft's net profit last quarter reached $27.7 billion, sufficient to absorb this investment loss Microsoft's financial report also shows that its loss from investments in OpenAI was $523 million in the same period last year, while this year's loss of $3.1 billion indicates a significant acceleration in OpenAI's capital consumption.

This disclosure confirms that large technology companies are providing funding support for the AI bubble and still have ample funds to maintain such high-intensity investments.

Microsoft did not provide further comments on the financial report data, only confirming that the $3.1 billion loss refers to its current fiscal year (which began on July 1) rather than the calendar year, so this is a quarterly loss rather than a nine-month loss