Microsoft’s OpenAI losses hidden as part of $4.7 billion ‘other’ expense — stake in AI company still doesn’t turn a profit as companies grapple with ongoing contract negotiation

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data-analytics-id=”inline-link” href=”https://www.tomshardware.com/tag/microsoft” data-auto-tag-linker=”true” data-before-rewrite-localise=”https://www.tomshardware.com/tag/microsoft”>Microsoft’s AI ambitions are in large part tied to OpenAI, but the financial picture surrounding the connection is pretty murky. In its latest annual report, Microsoft disclosed a $4.7 billion line item under “other, net” expenses for the fiscal year ending June 30, with no itemized breakdown. What it did admit is that the bulk of that figure reflects “net recognized losses on equity method investments,” according to reporting by data-analytics-id=”inline-link” href=”https://www.wsj.com/tech/ai/microsoft-needs-to-open-up-more-about-its-openai-dealings-59102de8?” target=”_blank” data-url=”https://www.wsj.com/tech/ai/microsoft-needs-to-open-up-more-about-its-openai-dealings-59102de8?” referrerpolicy=”no-referrer-when-downgrade” data-hl-processed=”none”>The Wall Street Journal. And while it’s long been understood…



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Microsoft’s OpenAI losses hidden as part of $4.7 billion ‘other’ expense — stake in AI company still doesn’t turn a profit as companies grapple with ongoing contract negotiation


data-analytics-id=”inline-link” href=”https://www.tomshardware.com/tag/microsoft” data-auto-tag-linker=”true” data-before-rewrite-localise=”https://www.tomshardware.com/tag/microsoft”>Microsoft’s AI ambitions are in large part tied to OpenAI, but the financial picture surrounding the connection is pretty murky. In its latest annual report, Microsoft disclosed a $4.7 billion line item under “other, net” expenses for the fiscal year ending June 30, with no itemized breakdown. What it did admit is that the bulk of that figure reflects “net recognized losses on equity method investments,” according to reporting by data-analytics-id=”inline-link” href=”https://www.wsj.com/tech/ai/microsoft-needs-to-open-up-more-about-its-openai-dealings-59102de8?” target=”_blank” data-url=”https://www.wsj.com/tech/ai/microsoft-needs-to-open-up-more-about-its-openai-dealings-59102de8?” referrerpolicy=”no-referrer-when-downgrade” data-hl-processed=”none”>The Wall Street Journal. And while it’s long been understood…



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Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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