Microsoft reports $10 billion in OpenAI revenue, Anthropic gives governments 40% off Claude, and more - Enterprise AI Brief #91

In this edition, covering 23 to 29 October:

• Microsoft's quarterly revenue rose 19% to $92.3 billion, and $10 billion of it came from commercial arrangements with OpenAI.
• Anthropic gives US governments a 40% discount on Claude through the GSA, and plans a European AI consultancy with Hg, the Financial Times reports.
• Microsoft offered voluntary buyouts to 60,000 employees, about 27% of its workforce.

Microsoft reports $92.3 billion in revenue, $10 billion of it from OpenAI

Microsoft's revenue for the first quarter of fiscal 2027, which ended on 30 September, rose 19% to $92.3 billion. Operating income rose 21% to $45.9 billion and net income reached $36.6 billion. Microsoft Cloud revenue rose 30% to $63.9 billion and Azure revenue grew 48%. The results include a $207 million net gain from Microsoft's OpenAI investment. Results

Microsoft recorded $10 billion in revenue from commercial arrangements with OpenAI in the quarter, including revenue sharing payments, nearly 11% of its total revenue, TechCrunch reports from a regulatory filing. OpenAI related revenue was $24.1 billion for Microsoft's fiscal 2026, and outstanding receivables from OpenAI rose to $7.2 billion. OpenAI revenue

Boehringer Ingelheim and Microsoft will study Digital Patient Twins, computational representations of individual patients, for clinical development. The research covers disease progression models, outcome prediction and trial simulations, starting with lung health and including possible synthetic or hybrid control groups. Boehringer Ingelheim

Jobs

Microsoft offered voluntary buyouts to 60,000 employees in Canada, India, the UK and the US, about 27% of its global workforce, as it spends heavily on AI. Microsoft buyouts

The Dutch government plans to cut the civil service by 16% by 2035, removing 25,000 positions through standard IT systems, AI and simpler rules, to save €3.5 billion a year. Netherlands

A UK government survey of 3,503 businesses found 32% used at least one AI technology in 2026, up from 16% in 2025; skills, unclear returns and accuracy and security concerns remain barriers. UK adoption

Anthropic cuts Claude prices for governments and plans a consultancy with Hg

Anthropic expanded its agreement with the US General Services Administration. Federal, state, local, tribal and territorial governments get a 40% discount on Claude Enterprise, Claude for Government and the Claude API, for direct purchases now and for sales through cloud providers in the coming months. There is no minimum spending requirement, and Anthropic estimates the deal could save the US government $1 billion. It will also start a program to help agencies implement Claude. GSA discount

Anthropic and the private equity firm Hg plan to launch an independent AI consultancy in Europe by the end of 2026, with hubs in London and Berlin, the Financial Times reports. It will place AI consultants and engineers inside businesses to integrate AI into workflows and build products. Anthropic will put in capital from its balance sheet and Hg will invest through its funds. Hg consultancy

Smart reports, in app surveys and pooled group budgets are now generally available to Claude Enterprise customers. The reports show team usage, costs, deliverables and workflow problems, the surveys collect employee feedback, and the pooled budgets let admins set one shared monthly budget per team alongside individual limits. Claude Enterprise

Oracle forecasts $30 billion in free cash flow and brings its apps to ChatGPT

Oracle forecasts $30 billion in free cash flow for the year ending May 2029, with cash flow turning positive late in fiscal 2028 after peak data center spending, Bloomberg reported, according to The Next Web. Oracle will cap new fundraising at $20 billion through May 2030 and keeps its target of at least $225 billion in revenue for fiscal 2030. Its shares rose as much as 14% after the announcement at its annual conference in Las Vegas. Free cash flow

At Oracle AI World, Oracle committed $1 billion over four years to its partners for training, technical enablement, migration funding and sales support. Oracle Marketplace adds co-selling with Oracle sellers, wider use of Universal Credits, metered billing, multi party offers and purchasing in India and Japan. Partners

OpenAI and Oracle are bringing Oracle applications and data into ChatGPT, and Oracle is developing products and services that run on OpenAI models. Oracle also plans to offer the OpenAI API, Codex and ChatGPT Work through Oracle Marketplace for US customers. OpenAI and Oracle

Oracle will offer Google TPUs on its cloud from 2027, the first hyperscale cloud outside Google to do so, will sell Snowflake as a native service, and launched AI Security Mesh, which uses OpenAI cyber models to find and fix vulnerabilities across clouds. TPUs · Snowflake · Security Mesh

Google opens Gemini and Search to more apps and ads

Google launched a beta Connected Apps Platform for US developers. Businesses can build, submit and monitor apps that work with Gemini, Google Search or both, and connect their services through MCP or Android MCP. Users can access actions from services such as Canva, YouTube Music and Calm through Google's AI features. Connected Apps

Google will bring ads in AI Mode to international markets and expand multi turn ads in the United States. It made the announcement as Alphabet reported third quarter revenue of $127.6 billion, up 25%, while growth in Search advertising slowed to 12%. Google Cloud revenue rose 103% to $30.7 billion, Constellation Research reports. AI Mode ads

Google Cloud launched Agent Compute Engine, which runs AI agents in hardware isolated microVMs, with a preview in the coming months, and extended agent governance in Gemini for business across clouds and managed devices. Agent Compute Engine

Coding agents and how companies measure them

GitHub made Copilot Fusion generally available on all Copilot plans in Visual Studio Code, the GitHub Copilot app, GitHub Copilot CLI and JetBrains IDEs. Fusion selects and coordinates models for each task through single model, cascade or critique workflows, with administrator controls and three effort levels. Paid users get a temporary 30% discount on model costs. Copilot Fusion

Slack made its Code API generally available. AI agents can create and manage dedicated code channels, add teammates and files, post progress and show code artifacts, under workspace permissions and admin controls; GitHub review and merge support will follow. Slack Code API

Cognition, the company behind the AI software engineer Devin, is expanding its London office for customer engagement, engineering, research, partnerships and sales across the UK and EMEA. Its UK team grew by more than 200% in six months. Cognition appointed Narry Singh as Senior Managing Director and Aman Thind as Field Chief Technology Officer. Cognition

A Deloitte survey of 3,500 business and IT leaders across 25 countries found that 81% of companies use AI to speed up decisions and execution, while only 25% report deep business transformation. Revenue gains rose to 28%, and 23% said accountability is unclear when AI produces a bad outcome. Deloitte survey

An ActivTrak analysis of 9,140 knowledge workers at 467 companies found AI users worked 8.4 to 9.1 hours a day against 7.6 for nonusers; heavy users switched apps more often and had shorter focus sessions. ActivTrak study

An internal Amazon memo calls token usage and code generation "deeply flawed" measures of AI adoption and discourages teams from relying on them alone, CNBC reports. Amazon memo

Harmonic, the AI startup co-founded by Robinhood CEO Vlad Tenev, says its Aristotle model can now verify software written in C and chip designs written in Verilog, beyond mathematical proofs, Reuters reports. Harmonic says the model rebuilt part of the software of the US DIII-D fusion lab from a research paper and a 254 word prompt. Harmonic

Cisco opens its models to partners, HPE picks ServiceNow

Cisco introduced Model Foundry in Cisco Cloud Control. Partners get specialized models for networking, security and operations through OpenAI compatible APIs, can serve them in customer applications and fine tune them on customer data. The service starts in controlled availability with partners. Cisco says a fine tuned Deep Network Model recommended the correct fix in 11 of 12 lab scenarios at World Wide Technology. Model Foundry

HPE selected ServiceNow in a five year agreement for the support services of its Cloud and AI business. The implementation will use ServiceNow tools for case management, customer service, field service, data integration, asset management and AI governance. HPE and ServiceNow

ServiceNow shares fell 27%, though third quarter revenue of $4.11 billion was in line and it raised its 2026 subscription outlook; adjusted earnings fell short and investors worry about AI disruption. ServiceNow

SAP and AWS

SAP added tools to build and govern AI agents to its Business AI Platform, support for more than 70 models, an Enterprise AI Gateway and an assistant for EU AI Act compliance, plus new tabular models. SAP

Amazon CEO Andy Jassy says AWS capacity is largely sold out through 2027, with commitments into 2028, as AI demand grows; Amazon plans about $220 billion in capital spending this year. AWS capacity

Service firms

Infosys says its AI revenue grew 29% from the previous quarter and made up 10.5% of second quarter revenue of $5.15 billion. Large deal value was $5.2 billion, 62% of it net new. Infosys revised its fiscal 2027 revenue growth guidance to 1% to 2% in constant currency and kept its margin guidance at 20% to 22%. Infosys

Cognizant is merging its application development, digital engineering and quality engineering practices into one software engineering group with AI native product units, Mint reports, citing internal memos. Cognizant

Western Australia is seeking reimbursement from Deloitte for a university merger study that contained AI generated references and cost discrepancies of up to $311 million; Deloitte will review and reissue the report. Deloitte

Ropes & Gray and OpenAI built a tool that reviews large document sets, groups commercial contracts by issue and drafts diligence reports; lawyers check the documents and outputs before clients get them. Ropes & Gray

Deals and funding

Guidewire agreed to acquire hyperexponential, the London based AI underwriting and pricing platform, for $1.7 billion in cash plus up to $400 million in contingent payments. The deal is expected to close in the second quarter of Guidewire's fiscal 2027. Guidewire

Meta acquired Sundial, an AI data analytics platform founded by former Meta employees Julie Zhuo and Chandra Narayanan, Axios reports. Sundial joins Meta's Data Analytics Tooling & Agents unit, where Narayanan will lead the tooling and agents work, and it will stop serving external customers after the deal closes. Sundial

Ravical, a Belgian startup whose AI platform helps accounting and tax firms standardise workflows and share internal expertise, raised a $17 million seed round led by MMC Ventures, with Lakestar, Pitchdrive and Shapers. Its total funding is now $25 million, and it plans to expand across Europe and into the US. Ravical

Ailytics, a Singapore based visual AI startup, raised $7.4 million in a Series A led by Tin Men Capital, with SEEDS, Safie, a Japanese construction company, family offices and existing investors. It says it has more than 400 deployments in 15 countries and plans to expand in Asia Pacific, the United States, Japan, Australia and the Gulf region. Ailytics

Fragment raised $56 million in a Series A led by 8VC for agents that handle purchasing and payment exceptions, Hyphenate $45 million led by Nexus Venture Partners for finance agents, and Avante $30 million led by Frist Cressey Ventures for benefits agents. Fragment · Hyphenate · Avante

Serval raised $150 million in a Series C led by Sequoia Capital Operations at a $3 billion valuation, SiliconANGLE reports, to take its service management agents beyond IT into HR, finance and legal work. Serval

Banks and finance teams

The Independent Community Bankers of America and OpenAI formed an alliance that gives eligible community banks access to OpenAI's Daybreak for Frontline Defenders, cybersecurity training, technical support and peer discussions. It also includes ICBA AI Show and Tell sessions and an AI Adoption group. ICBA and OpenAI

Bloomberg introduced BQuant Assistant, a conversational AI coding tool in BQuant Desktop and BQuant Enterprise. It generates and runs approved Python and BQL code, answers questions about Bloomberg data and workflows, helps debug projects and creates visualizations. It becomes generally available in BQuant Enterprise and enters a limited beta in BQuant Desktop at the end of October. BQuant Assistant

TD Bank U.S. introduced TD Credit Assist, which drafts six sections of a commercial credit memo with citations in under 30 minutes instead of up to three days; 95% of evaluated outputs passed expert review. A Bank of England and FCA survey of 196 UK financial firms found 86% use AI and 80% have AI agents in production. TD Bank · UK survey

Antitrust lawyers launch FluxCap, Noyb targets Scale AI

Jonathan Kanter and Doha Mekki, former antitrust officials at the US Justice Department, launched FluxCap, an AI platform for complex legal work. It reviews documents, does legal research, helps develop case strategies and identifies gaps in evidence, starting with antitrust law. The founders describe it as a tool that supports lawyers. FluxCap

The European data protection group Noyb says it is filing five complaints in Austria, France, the Netherlands and Italy against Scale AI. The complaints allege that Scale AI's Outlier platform tracks more than 900,000 freelancers, collects extensive personal data and requires repeated biometric verification. Scale AI's customers include Meta, OpenAI, Google and the US government. Noyb and Scale AI

Also

The FIA named AWS its official artificial intelligence, cloud computing, machine learning and cloud infrastructure partner, and AI tools will play a bigger part in developing Formula 1's aerodynamic rules, The Race reports. FIA and AWS