When Microsoft reported its fourth-quarter earnings for fiscal year 2026 on July 19th, it revealed that its investment in Anthropic had brought in a tidy $3.2 billion gain, whereas its investment in OpenAI saw a significant write-down of around $600 million.

The gains from Anthropic were particularly striking, with the company recording a $4.81 diluted earnings per share (EPS) for the quarter—a boost of 33 cents thanks to this gain alone. Microsoft had invested $5 billion in Anthropic last November as part of an agreement to purchase $30 billion worth of Azure services.

In contrast, Microsoft’s investment in OpenAI did not fare quite so well during the quarter, resulting in a reduction of about 7 cents per share. Despite this, on a full-year basis, Microsoft saw its OpenAI investment generate a more substantial gain—$5 billion—and add $0.67 to EPS. It is noteworthy that one quarter’s worth of Anthropic gains ($3.2 billion) almost matched the yearly gain from OpenAI in its entirety.

Microsoft remains optimistic, having reported overall revenues of $90 billion and a net income of $35.8 billion for the quarter, with full-year figures showing even greater profitability. The company’s financial moves reflect the rapidly evolving landscape of AI, where both cooperation and competition are key players in the future of technology.