Seventy percent of Microsoft's AI revenue comes from OpenAI, with its fiscal year contribution reaching US$24.1 billion. The latest disclosed information shows that OpenAI has become an important source of revenue for Microsoft's artificial intelligence business.

Seventy percent of Microsoft's AI revenue comes from OpenAI, with its fiscal year contribution reaching US$24.1 billion. The latest disclosed information shows that OpenAI has become an important source of revenue for Microsoft's artificial intelligence business. In the fiscal year ending in June this year, OpenAI contributed approximately US$24.1 billion in revenue to Microsoft, accounting for approximately 70% of Microsoft’s total AI revenue. According to Bloomberg, Microsoft CEO Satya Nadella previously stated at the end of March that the company’s artificial intelligence business is expected to achieve annual revenue of more than US$37 billion. According to the cooperation agreement between the two parties, OpenAI needs to pay Microsoft for computing resources, model development-related costs, and share part of the revenue. OpenAI’s important contribution to Microsoft’s AI business has also influenced Microsoft’s recent strategic expression in the field of artificial intelligence. Microsoft, long known for its commercial software ecosystem and platform lock-in capabilities, has begun to actively promote the development of open source models in recent years and emphasizes preventing a few closed-source AI models from controlling the value distribution of the entire industry. Nadella has also previously expressed his views on the "model distillation" controversy in the AI ​​industry. Model distillation refers to using the data or output generated by a large proprietary model to create a smaller model that is cheaper to train. Some AI companies believe that this behavior may weaken their technological advantages, while Microsoft has questioned the relevant restrictions. At the same time, Microsoft is gradually reducing its reliance on external models and integrating more self-developed artificial intelligence models into core products such as Office. According to reports, the company is promoting Copilot ecological adjustments to reduce cost dependence on OpenAI and other third-party models. As the commercialization of generative AI enters an in-depth stage, Microsoft and OpenAI are both partners and potential competitors. How to balance model supply, business benefits and independent AI capability building will become an important issue in Microsoft's future artificial intelligence strategy. via AI News (author: AI Base)