Microsoft's Q1 Profit Rises As Tech Giant Takes $3.1B Hit From OpenAI Investment

Benzinga

Microsoft reported a $3.1 billion hit to quarterly net income tied to its OpenAI investment, reducing EPS by 41 cents. Despite this, profit rose to $27.7 billion as OpenAI’s recapitalization reshaped their partnership. OpenAI will buy $250 billion in Azure services, while Microsoft retains strong collaboration momentum under CEO Satya Nadella.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Microsoft reported a $3.1 billion reduction in first-quarter net income due to its investment in OpenAI,

00:08which cut earnings per share by $0.41, according to CNBC.

00:11Despite the hit, net income rose to $27.7 billion, or $3.72 per share,

00:16up from $24.67 billion, or $3.30 per share a year earlier.

00:21The announcement follows OpenAI's recapitalization,

00:24which created a non-profit foundation holding 26% of the for-profit business.

00:28Microsoft said OpenAI agreed to purchase an additional $250 billion in Azure services,

00:33though Microsoft loses its rights of first refusal as a compute provider.

00:37Microsoft CEO Satya Nadella praised the company's partnership with OpenAI

00:41as one of the industry's most successful, citing mutual growth and shared benefits.

00:45For all things money, visit Benzinga.com.

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