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Microsoft took a $3.1 billion hit to its net income in the first quarter due to the software company's hefty investment in OpenAI.

In its earnings report on Wednesday, Microsoft said the drop in profit reflected an "equity method investment," resulting in a 41-cent decline in earnings per share. Net income still rose to $27.7 billion, or $3.72 per share, from $24.67 billion, or $3.30 per share, a year ago.

Since first backing OpenAI in 2019, Microsoft has committed to invest $13 billion in the company, with $11.6 billion already funded as of the end of September, according to a filing .

The announcement comes a day after OpenAI announced that it completed a recapitalization, cementing its structu

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