Microsoft's next AI move: Satya Nadella says a Copilot 'super app' is coming
&imwidth=600&imheight=450&format=webp&quality=medium "Microsoft's next AI move: Satya Nadella says a Copilot 'super app' is coming")
Satya Nadella says Copilot is becoming an AI super app after record Microsoft earnings Photograph: (AFP)
Microsoft reported a record $331 billion in annual revenue as CEO Satya Nadella unveiled plans for a Copilot AI super app. The company also crossed $100 billion in Azure revenue, passed 30 million Microsoft 365 Copilot seats and outlined its strategy to build more of its own AI technology.
Microsoft has delivered its biggest financial year on record and it is using that momentum to double down on artificial intelligence. The technology giant reported $331 billion in annual revenue, while its cloud business generated $214 billion. Azure also crossed $100 billion in annual revenue for the first time, underscoring the growing demand for Microsoft's AI-powered cloud services. But the biggest announcement came from CEO Satya Nadella, who revealed that Microsoft is preparing a Copilot super app, signalling the company's next major step in the AI race.
Copilot is evolving beyond a chatbot
Speaking during Microsoft's earnings call, Nadella said the company is bringing its Copilot experiences together into "one super app."
The platform is expected to combine Microsoft's AI products including Copilot, GitHub Copilot and other AI-powered productivity tools into a single interface. Rather than switching between multiple applications, users could access coding, writing, research, enterprise workflows and AI assistance from one place. The move puts Microsoft in more direct competition with OpenAI, Anthropic and Google as AI companies race to build all-in-one assistants that become the primary interface for work.
Microsoft is reducing its dependence on OpenAI
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Nadella also signalled that Microsoft is becoming increasingly independent in AI development. The company is investing in its own AI models, custom chips and enterprise AI architecture while continuing its long-standing partnership with OpenAI. "We ourselves are using it," Nadella said, referring to Microsoft's internal AI design approach. The shift reflects Microsoft's strategy of giving enterprise customers access to multiple AI models instead of relying on a single provider.
AI is driving Microsoft's growth
Microsoft also revealed that adoption of Microsoft 365 Copilot continues to accelerate. Paid M365 Copilot seats have surpassed 30 million, up from 20 million in the previous quarter, highlighting growing demand for AI-powered workplace tools.
Meanwhile, Microsoft's commercial cloud backlog increased to $678 billion, with the company saying the latest growth came entirely from customers outside the leading US AI model developers. Although Microsoft continues investing heavily in AI infrastructure, it forecast lower-than-expected capital expenditure for the coming year while maintaining long-term investment plans. The message from Microsoft's record earnings was clear: AI is no longer just another product inside the company. It has become the centre of Microsoft's future strategy and the upcoming Copilot super app could be its biggest AI launch yet.
