Microsoft reorganizes into agents and infra segments, Nadella says

Nadella emphasized a "cost-to-outcome" frontier, where customers will judge AI based on the value produced per token. To support this, Microsoft is expanding its multimodel system, which separates the model from the "harness" (context, memory, and action space). This architecture allows for interchangeable models, ensuring business continuity if a specific model is swapped out. The company currently offers over 11,000 models from partners like OpenAI, Anthropic, and Mistral, alongside its own MAI family.

The letter also highlights progress in hardware and consumer tools. Microsoft 365 Copilot has transitioned to asynchronous agents capable of long-running tasks, surpassing 30 million paid seats. Additionally, a new tool called Agent 365 is being positioned as a control plane for managing agents similarly to human employees. Nadella framed these changes as essential for the "Super Intelligence" era, focusing on custom chips and local model execution on PCs.