Microsoft Earnings Suggest Massive OpenAI Quarterly Loss Exceeding $11.5 Billion
Microsoft’s recent financial filings reveal that OpenAI incurred a significant net loss during the quarter ending September 30th. Based on Microsoft’s reported $3.1 billion loss from its OpenAI investment, calculated through equity accounting, it is estimated that OpenAI’s loss was around $11.5 billion, with potential for an even higher loss exceeding $12 billion. This calculation is derived from Microsoft’s 27% stake in OpenAI, though a previous 32.5% stake is also reported. While this loss is substantial, the article highlights the financial capacity of Big Tech, specifically Microsoft, to absorb such losses within the current AI landscape.
John Q. Hosedrinker