Microsoft logs $3.2B from Anthropic investment, but OpenAI was a mixed bag
Microsoft's Q4 fiscal 2026 earnings reveal starkly different performances from its high-profile investments in two rival AI labs.
Stock photo for illustration only, not from the actual event
- Microsoft recorded a $3.2 billion gain from its Anthropic investment in the latest quarter.
- The OpenAI stake saw a write-down of about $600 million in the same quarter.
- On a full-year basis, the OpenAI investment generated a massive $5 billion gain.
Microsoft released its stellar fourth-quarter earnings report for fiscal 2026, which concluded on June 30, tucking away fascinating details regarding how its financial stakes in the two largest competing AI laboratories are performing.
For the quarter, the tech giant recorded its investment in Anthropic as a massive $3.2 billion gain, which successfully boosted diluted earnings per share by 33 cents, contributing to a total diluted EPS of $4.81. Microsoft initially poured $5 billion into Anthropic back in November 2025 under a circular agreement requiring the AI lab to purchase $30 billion worth of Azure cloud services.
Stock photo for illustration only, not from the actual event
Conversely, Microsoft disclosed that its investment in OpenAI did not perform nearly as well during the quarter, resulting in a write-down of approximately $600 million and reducing diluted EPS by about 7 cents. Microsoft currently holds roughly a 27% stake in OpenAI and receives revenue-share payments, though exact figures from this arrangement are kept private.
Backing multiple competing AI frontrunners allows Microsoft to hedge its bets across a rapidly evolving and fiercely competitive technological landscape. While quarterly valuations of private AI stakes can fluctuate significantly, the underlying commercial synergy—such as mandating cloud consumption on Azure—cements Microsoft's strategic positioning regardless of short-term market adjustments.
Despite the notable downward adjustment this quarter, the $600 million write-down remained largely a rounding error for Microsoft. The corporation delivered a heavily profitable quarter, bringing in $90 billion in revenue alongside $35.8 billion in net income. For the entire fiscal year, Microsoft achieved a total revenue of $331.8 billion and a net income of $133.7 billion.
Furthermore, Microsoft's investment in OpenAI presents a much stronger picture when evaluated over a full twelve-month period. For the entire fiscal year, the OpenAI partnership generated a $5 billion gain and added $0.67 to the company's total annual EPS of $17.95. Nonetheless, it remains striking that Microsoft managed to secure nearly as much gain from Anthropic in a single quarter as it did from OpenAI across the entire year, prompting the company to explicitly highlight the detail.
Source: TechCrunch
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