Microsoft takes a $3 billion plus hit to its net income, and the reason is ChatGPT-maker OpenAI

Microsoft has reported robust quarterly results, with net income climbing to $27.7 billion despite a $3.1 billion drag from its massive investment in ChatGP-maker OpenAI. The software giant’s earnings per share rose to $3.72, up from $3.30 a year earlier, even after a 41-cent reduction tied to an “equity method investment” in the AI company. Overall net income increased from $24.67 billion in the prior-year period.

On the earnings call, CEO Satya Nadella praised the alliance as “one of the most successful partnerships and investments our industry has ever seen,” emphasizing mutual benefits from shared growth in AI and beyond.