Microsoft’s OpenAI losses hidden as part of $4.7 billion ‘other’ expense — stake in AI company still doesn’t turn a profit as companies grapple with ongoing contract negotiation

Microsoft’s AI ambitions are in large part tied to OpenAI, but the financial picture surrounding the connection is pretty murky. In its latest annual report, Microsoft disclosed a $4.7 billion line item under “other, net” expenses for the fiscal year ending June 30, with no itemized breakdown. What it did admit is that the bulk of that figure reflects “net recognized losses on equity method investments,” according to reporting by The Wall Street Journal. And while it’s long been understood…