Just wrapped our earnings call.

It was a very strong close to what was a record fiscal year for Microsoft.

· Annual revenue: $331B, +18%
· MS Cloud: $214B, + 27%
· And Azure: $100B, +41%

And even bigger opportunity ahead!

I wanted to share some more perspective on two areas of focus for us:

1/ We are building a new model system, where the harness, context, memory, and action space are separate from any one model family, thereby moving the frontier on the cost -to-outcome curve.

And it’s not just about cost. It also has the added benefit of business continuity and resilience because every model is substitutable.

This is the system we are using in our products, with great results.

And we are making it available for our customers via Foundry too.


microsoft.ai/news/optimizing…

2/ When it comes to Copilot, we are innovating rapidly, from chat to Cowork to Autopilots.

We have also been super focused on improving the quality and performance of Copilot.

Over the last three quarters, user satisfaction scores have doubled. And this quarter alone, we cut latency by 25 percent.

Copilot usage intensity speaks for itself:

· Number of conversations per user nearly doubled Y/Y
· Average weekly engagement on par with Outlook and Teams
· Number of customers with over 50K seats up 7X Y/Y
· Customers deploying Copilot to majority of information workers, up nearly 75% QoQ

And this quarter we will bring all our Copilot experiences together in one “super app” spanning both our consumer and commercial experiences.

I’m greatly looking forward to this!

3/ A big Thank you to our employees and to our customers for continuing to put their trust in us.

Read more here:
microsoft.com/en-us/investor…

Some more detail on the ROIC Intelligence App I built yesterday and mentioned on today's earnings call.

I took the PDF that Brian Nowak at Morgan Stanley put together for Hyperscale ROIC this week and used Copilot code (coming in our new superapp) with a single prompt + skill (/drill-me) to create the plan, then used autopilot in auto to create the full app (with history, lookups, scenarios, what-ifs, etc). And /rubber-duck to test.

And the best part is that all the artifacts are in my enterprise environment. My app is in Copilot, my code is in GitHub Enterprise; all my data pipelines/lake/semantic models are in Fabric. And everything is under Agent 365 IT/Sec/FinOps control!

So this is not about Tokenmaxxing or vibe coding. Every step of the way the rails are engineered to create value, making everything a long-term reusable asset, with governance/security, and cost controls.

This is the full system to drive business value. Disclosures: This is all pulled from public sources, and for illustrative purposes only...not financial advice! :)

Here is the app and architecture...

Can AI make you feel?

In L’Ultimo Uomo Reale, Lipstick pushed the boundaries of AI filmmaking, moving beyond realistic visuals to achieve believable performances.

From maintaining character consistency to preserving cinematic detail across every frame, Kling AI helped bring this Cannes Lions-winning film to life, creating a world that feels convincingly human enough to explore the film's central question: what's real?

Go behind the scenes and discover how AI becomes what Sebastian Strasser calls "directed technology."

Expecting A Minor update? We prefer to B Major. 🎶


@GoogleDeepMind
just released Lyria 3.5, and we’ve plugged it directly into
@GoogleFlowMusic
to power your next session.

What this means for your tracks:

✨ Better prompt adherence: Flow Music understands your creative direction with much more accuracy. Set exact BPMs and export stems for full-length songs!

🎤 Upgraded vocals: More expressive, dynamic, and rich singing.

🎸 Richer musicality: Arrangements flow more naturally from note to note.

Hear it for yourself and start creating at
flowmusic.google
👇