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:

Today, we are announcing a series of updates that give customers frontier-grade security at half the cost. MAI-Cyber-1-Flash is our first cybersecurity model, built ground up to find the most challenging vulnerabilities in complex code bases. When combined with MDASH, it delivers world-class performance at 50 percent of the cost of leading models. We are bringing this capability to market through Project Perception, a complete agentic security offering grounded in real-world signals and security workflows. Teams of specialized agents work together to simulate attacks, detect and triage/investigate, and fix and remediate. This is the benefit of building the harness, context/signals, and action space separate from one model family. By combining specialized models and data with the right agents, tools, security context, and harness, we can advance the frontier of cost to outcome.

Open-weight models are essential to a healthy AI ecosystem. Together with others across our industry, we are outlining a path for open-weight models to strengthen American competitiveness and expand economic opportunity, while protecting national security.

Scientific discovery has long been one of America's greatest strengths. That's why we're deepening our partnership with the U.S. Department of Energy's #GenesisMission# through new investments in AI infrastructure, scientific computing, engineering expertise, and a collaboration hub designed to help researchers across America's national laboratories, universities, and industry work together more effectively. Our goal is to accelerate AI-driven scientific discovery. From energy and medicine to advanced materials, faster scientific breakthroughs can strengthen America's competitiveness and create lasting value for generations to come. @ENERGY @Microsoft

An important piece from Demis. We need more of this kind of thinking. A good reminder that the goal is a frontier ecosystem that promotes innovation and choice, while avoiding any one model drop that breaks the world!

To coincide with the #A250#, Microsoft unveiled an AI experience that lets visitors have a conversation with U.S. President Theodore Roosevelt at the new @TRPresLibrary. And who better to put our avatar to the test than American historian @DorisKGoodwin? The result was a conversation across time. Powered by @Microsoft technology and built on Roosevelt’s writings, speeches, letters, and historical records, this experience shows how technology can make archives more accessible, scholarship more dynamic, and history more engaging for a new generation.

Microsoft is just one beneficiary of 250 years of American history and the choices made by past generations. As an American company, we believe we have a responsibility to understand where we have been, learn from it, and help make real for others the opportunities created for us.  As America enters its 251st year, we face another inflection point shaped by rapid technological change. That is why we created this series. Throughout July, we will reflect on moments in American history with six video episodes when people faced uncertainty and made choices that set in motion consequences they could not fully see. Some decisions advanced the country. Others revealed how much work remained. Together, they remind us that history is not inevitable; it is made by people, in moments, through choices. Our goal is not simply to celebrate that history, but to learn and connect the past to the questions we face today. Because one of the best ways to honor 250 years of American history is to think seriously about what we will do next. Stay tuned for episode 2 next week. @Microsoft

The future of the firm is a learning loop in which human capital and token capital compound. With our new Frontier Co., our ambition is to help every enterprise build its own AI capability, and to help create a frontier ecosystem where every organization can turn its knowledge, workflows, and judgment into its own AI systems that continuously improve.

.@gordonritter makes an important point: the most automated decade in business history will reward the companies that invest in their people, not those that replace them. As Gordon points out, the lasting value of AI won't reside in any single model, but in human judgment, creativity, and expertise that’s amplified by AI and compounds inside their organizations. This is the foundation for an AI economy and Frontier Ecosystem that works for everyone, where every company, industry, and community can build and own its unique advantage, and where the benefits are broadly shared, not narrowly held.

When we launched our Community-First AI Infrastructure plan in January, we made a promise: we would meet the growing demand for datacenters without straining the resources communities depend on. Water was central to that commitment. Today we shared our progress. Since our first datacenter designs in the early 2000s, we have improved our water-use effectiveness by nearly 90 percent. We are more than halfway to our 2030 water-intensity goal. And in FY25, we replenished more water globally than we withdrew, a milestone toward becoming water positive. Digital growth and responsible water stewardship can move forward together, and the communities we call home should be stronger for it. @Microsoft

New Azure milestone. The fastest time to train yet at the largest reported scale for this leading AI training benchmark. A great example of what is possible when we bring together full-stack innovation across silicon, systems, networking, and software, along with our deep partnership with @nvidia, to advance the frontier of AI infra.

Copilot Cowork is now generally available! Over the last few months of preview in Frontier, we’ve seen you use Cowork to help with so many different tasks. We’ve also been listening closely to your feedback and with GA, we’re bringing you more improvements + new features across model choice, extensibility through plugins, browser automation, and cost management controls. Here’s a quick demo showing the latest updates in action - inspired by some of my own day-to-day tasks. You can also read more in the blog linked below...

Copilot Cowork is now generally available worldwide, now with multi-model support! Every organization can put long-running agents to work on complex, multi-step tasks, grounded in your organization's unique knowledge and know-how.