Microsoft’s commercial remaining performance obligation (RPO) has reached $625 billion—up 110% year-over-year—with approximately 45% attributed to its OpenAI partnership commitments.
RPO Breakdown
| Segment | Amount | Notes |
|---|---|---|
| OpenAI (~45%) | ~$280B | Azure compute commitment |
| Diversified (~55%) | ~$345B | +28% growth |
CFO on Diversification
“The significant remaining balance [non-OpenAI RPO] grew 28% and reflects ongoing broad customer demand. Super high confidence in it.”
— Amy Hood, CFO
OpenAI Infrastructure Independence
The partnership is evolving as OpenAI builds alternative infrastructure:
- Stargate: $500B commitment with SoftBank, Oracle, MGX
- AWS: $38B 7-year deal
- CoreWeave: $12B
- Amazon: $10B+ in talks
Microsoft’s Hedge Position
- 27% equity stake (~$135B value)
- IP rights through 2032
- Internal MAI+ model development
- Multi-vendor model strategy (Claude 4.5, Mistral, Cohere in Foundry)
The Strategic Shift
The relationship has evolved from dependency to hedged coexistence—both companies building optionality while maintaining mutual benefit.
For a deeper strategic analysis, read Microsoft In The AI Stack on The Business Engineer.
