Microsoft’s Azure OpenAI segment is on track to reach a 10 billion dollar annual revenue run rate, making it the fastest-growing segment of the company’s entire cloud business. TikTok, through its parent company ByteDance, was the biggest spender on Azure OpenAI, with monthly spending close to 20 million dollars in 2024, accounting for approximately 25% of the platform’s total revenue. Adobe and Meta crossed the 1 million dollar monthly spending threshold in September 2024, joining Microsoft’s top-10 customer list. Perplexity signed a 750 million dollar, three-year deal with Azure, gaining access to AI models from OpenAI, Anthropic and xAI. Microsoft’s position is unique: it is simultaneously a major investor in OpenAI, the host of its models through Azure, and a competitor to many of its own AI customers.
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