Microsoft Logs $3.2B from Anthropic Investment, but OpenAI Was a Mixed Bag

What happened

Microsoft reported fourth-quarter earnings for fiscal 2026 year (ended June 30, 2026) on July 29, 2026, revealing a starkly different picture in its AI investment portfolio. The tech giant announced it recorded a $3.2 billion gain from its investment in Anthropic for the quarter, while simultaneously taking a $600 million write-down on its OpenAI investment [1].

The earnings announcement came at 3:46 PM PDT and was reported by TechCrunch. The investment focus centered on two major AI labs: Anthropic and OpenAI, representing Microsoft's strategic bets on the future of artificial intelligence.

Why it matters

The divergent outcomes highlight the increasing volatility in AI investments as companies scale their operations. Microsoft's $3.2 billion gain from Anthropic represents a significant boost to its financial position, adding 33 cents to diluted earnings per share for the quarter [1]. This contrasts sharply with the $600 million write-down on OpenAI, which reduced diluted EPS by 7 cents.

The numbers tell an important story about Microsoft's evolving relationship with these AI companies:

• Microsoft invested $5 billion in Anthropic in November 2025 [1]
• Under a circular agreement, Anthropic agreed to buy $30 billion worth of Azure services [1]
• Microsoft holds a 27% ownership stake in OpenAI [1]
• Despite the write-down, OpenAI investment added $5 billion in gain for Microsoft over the full year [1]

The quarter's financials showed: - $90 billion in revenue - $35.8 billion in net income for the quarter - $17.95 EPS for fiscal year - $133.7 billion in net income for fiscal year [1]

The contrast between Anthropic's success and OpenAI's mixed results reflects broader industry dynamics as AI companies mature from startup to enterprise scale, with different valuation trajectories emerging.

What to watch

Several key developments warrant attention:

1. Anthropic's Azure relationship: The $30 billion Azure purchase commitment represents a massive cloud computing contract that will provide steady revenue for Microsoft while Anthropic continues its growth [1].

2. OpenAI's long-term value: Despite the quarterly write-down, Microsoft's 27% stake in OpenAI has generated significant value over time, with a $5 billion gain recorded for the full year [1].

3. AI investment volatility: The contrasting outcomes demonstrate how AI investments can swing dramatically based on company performance and market conditions.

4. Earnings per share impact: The net effect of these investments was a 26-cent boost to quarterly diluted EPS (33 cents from Anthropic minus 7 cents from OpenAI), showing Microsoft's ability to leverage AI investments for shareholder value [1].

5. Fiscal year performance: Microsoft's $17.95 annual EPS reflects the cumulative benefit of its AI strategy, with OpenAI contributing 0.67 in EPS over the full year [1].

The TechCrunch report provides the complete details on this developing story in the AI investment landscape [1].

By the numbers

Source snapshot

Sources: [1] https://techcrunch.com/2026/07/29/microsoft-logs-3-2b-from-anthropic-investment-but-openai-was-a-mixed-bag/