Microsoft's AI Investments and Revenue
Microsoft has updated its contract with OpenAI, with the AI model builder committing to spend an additional $250 billion on Azure infrastructure.
As a result, Microsoft's revenue backlog, dominated by its Azure cloud, stood at $392 billion at the end of the first quarter of its fiscal 2026 year.
The deal gives Microsoft a 27% stake in OpenAI, valued at $135 billion, based on OpenAI's current $500 billion valuation.
Big Bill is sitting pretty with a $642 billion revenue backlog that is still growing.
Author's summary: Microsoft's AI investments yield significant revenue growth.