OpenAI Now Makes Up 11% of Microsoft's Revenue

Impact · against what's priced in

Microsoft's results confirm the high-growth trajectory the market expects, though they introduce a new concentration risk regarding OpenAI. Alphabet's price, which already refuses to pay for AI growth, is further pressured as Microsoft's AI monetization proves more aggressive than Alphabet's current baseline.

GOOGL−0.40

Challenges what's priced in

The price assumes

Cloud revenue growing at or just above the current 35.8% pace

Microsoft's Azure growth of 48% and rapid AI monetization via OpenAI contrast with the baseline growth the market is currently willing to pay for at Alphabet.

What GOOGL's price assumes · Sep 2

• MSFT▲11%
• GOOGL▲10%
• ai
• alphabet
• capex
• cloud computing
• data centers
• earnings