Microsoft recorded $10 billion in revenue from OpenAI

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1:06That's framer.com slash fcdaily. Rules and restrictions may apply. This episode is brought to you by ODSC AI. Join the thousands at ODSC West 2026 this October and be alongside the other AI practitioners and teams who are staying ahead of the field, learning from the best and connecting with the community. Now, if you work in applied AI and data science, you have to be there. ODSUS 2026 is happening in San Francisco, October 27th through the 29th. But you don't have to be there in person if you can't make it. You can also join virtually. So there's virtually no excuses not to participate in this hands-on training.

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2:14Again, ODSC West 2026 is happening October 27th through the 29th in San Francisco and virtually. Go to odsc.ai slash west and use promo code tcdaily for an additional 15 % off your pass to odsc.ai west 2026. That's odsc.ai slash west and use code tcdaily to get an extra 15 % off on the number one AI builders and training conference. Microsoft recorded$10 billion in revenue from OpenAI. I'm Imran Shaikh and your Daily Crunch for Friday featuring three big tech headlines starts right now. Ahead of the holiday season, Amazon has added more than 100 new shopping-related capabilities to Alexa, including managing subscriptions and lists, updating delivery instructions, solving payment issues, and answering questions about Prime subscriptions.

3:01The update allows you to use Alexa to create lists, register them, see what's on them, and add or edit items. You can also manage subscriptions with the AI bot. For example, you could ask it to change deliveries for an item to every three months instead of every month, and edit delivery instructions such as change an address or add drop-off details. Users also can now ask Alexa about their Prime or Audible subscriptions, and ask it questions about billing or payment issues. Amazon has launched various AI-centric shopping features this year, including a shopping assistant and a way to notify users about new products and offers.

3:35The company said that since the start of the year, the number of people using agentic features has grown 8x. And over the last 12 months, over 400 million consumers have used Alexa for shopping. DoorDash announced on Thursday that it has agreed to acquire rival Instacart for$17 billion. Now, the acquisition would bring two major players in on-demand delivery under one roof, combining DoorDash's dominance in restaurant takeout with Instacart's reach in grocery delivery. DoorDash will buy Instacart for a total value of$65 for each Instacart share, the company said. Now, the deal's been approved by the boards of both companies.

4:12DoorDash plans to keep Instacart's brand, enterprise technology products, and app. The company also notes that the two brands will continue to operate as separate and independent companies until the transaction closes. DoorDash says the deal could help more grocers build out their own online ordering platforms and advertising businesses using Instacart's technology, while grocers could also use DoorDash's fulfillment services to handle more online orders and offer lower-cost delivery. Grocery is one of the hardest things to get right online, DoorDash CEO Tony Hsu said in the press release. Instacart currently has a market cap of more than$13 billion, and its stock price is up 25 % for the year to date.

4:52The company likely viewed this as an opportune time to sell at a desirable price, ahead of intensifying competition in the grocery delivery market. Bloomberg previously reported that Instacart was in talks with Uber, but that the company had walked away from discussions. The deal is expected to close toward the end of 2027 or in the first half of 2028. This episode is brought to you by Simplify. For your entire career, your paycheck funded the life you built, and what was left you saved for a retirement nest egg. But as retirement approaches, there's a question to consider. Where will regular income come from on a monthly basis?

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5:57Carefully consider the fund's investment objectives, risks, charges, and expenses before investing. The prospectus contains this and other information. Visit simplify.us slash nest egg to learn more. Please read the prospectus carefully before you invest. Distributor, Foresight Financial Services, LLC. While Microsoft generated$10 billion in revenue from commercial agreements with OpenAI, including revenue-sharing payments, in the quarter ended September 30th. the company said in a regulatory filing on Wednesday. That represents nearly 11 % of Microsoft's total quarterly revenue of$92.3 billion, highlighting the enormous financial ties that remain between the two companies even as they increasingly compete for the same customers.

6:40For the full 2026 fiscal year, revenue from OpenAI hit$24.1 billion. At its latest quarterly pace, Microsoft would pull in$40 billion annually from OpenAI-related arrangements. Microsoft also reported$7.2 billion in outstanding receivables from OpenAI at the end of September, up from$6 billion at the end of June. That money represents amounts OpenAI owes for previous transactions, not additional revenue. Now, it's not clear how much of Microsoft's revenue from OpenAI came from revenue-sharing payments or Azure cloud computing services. TechCrunch has reached out for more information. In November 2025, TechCrunch reported, citing leaked documents, that Microsoft had received$865.8 million in net revenue-sharing payments from OpenAI during the first nine months of that year.

7:29OpenAI reportedly shares 20 % of its revenue with Microsoft as part of a previous deal in which the software giant invested more than$13 billion in the AI startup. To note, neither the AI Lab nor Microsoft have publicly confirmed this percentage. As part of an April 2026 agreement, OpenAI is on the hook to continue sharing revenue with Microsoft through 2030, subject to a cap even as OpenAI is allowed to work with competing cloud providers. The companies began loosening the ties of their once-exclusive partnership in October 2025, when Microsoft relinquished its hold on OpenAI to give the startup more freedom to partner with other cloud providers.

8:07In exchange, OpenAI committed to buying an additional$250 billion in Azure services as part of an October 2025 agreement. Microsoft's ownership stake in OpenAI has also declined slightly from about 25 % in June to 24 % in September. That continues a gradual decline from roughly 27 % following the October 2025 recapitalization. Microsoft did not specify what caused the dilution. And folks, that's your Daily Crunch. Today's stories were reported by Ivan Mehta, Aisha Malik, Rebecca Balan, and more awesome TechCrunch journalists. We'll see you here tomorrow. Same Tech Time, same Crunch channel. And until then, find us at TechCrunch.com.

9:14We'll see you next time. best dressed. Make your move. Order on the Sweetgreen app.