SAN FRANCISCO - Leaked financial documents reveal OpenAI, the creator of ChatGPT, has channeled over $1 billion to Microsoft since 2023, primarily through credits for Azure cloud computing services. The disclosures, stemming from internal OpenAI records, detail a complex financial arrangement underpinning the partnership between the two tech giants and raise questions about OpenAI's path to profitability.
The payments, largely in the form of reduced Azure costs, illustrate the significant investment Microsoft is making in openai as it races to integrate artificial intelligence across its product suite. While OpenAI publicly aims for self-sufficiency, these credits demonstrate a continued reliance on Microsoft's financial backing, impacting the company's reported revenue and possibly influencing its strategic direction. The arrangement affects investors, competitors in the AI space, and users of both OpenAI and Microsoft products as it shapes the future of AI advancement and deployment.
According to the leaked data, openai received approximately $800 million in Azure credits in 2023 alone, with projections exceeding $1.3 billion for 2024. these credits effectively lower OpenAI's operational expenses, allowing it to focus resources on research and development. The financial arrangement began in 2023 following Microsoft's initial $1 billion investment in OpenAI.The documents also show a tiered system of Azure credits, with OpenAI receiving increasing benefits as its usage of Microsoft's cloud platform grows. This incentivizes OpenAI to continue expanding its reliance on Azure, further solidifying Microsoft's position as a key partner. OpenAI's financial statements reportedly show a substantial portion of its revenue is offset by these Azure credits, impacting its reported profitability.
Microsoft has not publicly disclosed the full extent of these credits, and openai has remained tight-lipped about the specifics of the financial arrangement. Though, experts suggest the arrangement is mutually beneficial, allowing microsoft to gain a competitive edge in the AI market while providing OpenAI with the resources it needs to scale its operations. The leaked files were first reported by *The Information* on November 16, 2024.