Giant Unveils New Products and Partnerships to Solidify its Position in the Industry

Microsoft has emerged as a leader in the artificial intelligence industry, unveiling a raft of new products and partnerships at its annual Build conference in Seattle. The $3.4tn tech giant has sought to tighten its grip on the AI sector, revealing a series of AI-related advances, including a powerful coding “agent” that can work using simple instructions and a tool for businesses to build and manage multiple digital assistants.

The conference, which featured virtual appearances from tech titans such as OpenAI chief Sam Altman, Elon Musk, and Nvidia chief Jensen Huang, reflects how the fortunes of AI groups have become inextricably tied to Microsoft. The company’s leadership, under the guidance of Satya Nadella, is positioning itself at the heart of the AI sector, with Nadella stating that “this is a platform that we want to create together… I think something big is going to shake out of this because this is not just a repeat of the past.”

Microsoft’s partnership with OpenAI, which is valued at around $14bn, has been a key driver of the company’s AI ambitions. However, Musk, who is suing Microsoft over the partnership, has promised Nadella’s customers that their feedback will influence the direction of xAI’s Grok family of models, which will be offered on Microsoft’s Azure Foundry platform. The partnership with OpenAI has also seen Microsoft integrate OpenAI’s Codex coding agent into its GitHub Copilot service, allowing developers to use the AI tool to generate code.

The company’s share price has risen over 8% in 2025, driven by market confidence in its AI plans. Microsoft’s rivals, including Amazon and Google, have adopted a similar strategy of allowing multiple AI models to run on their platforms, but analysts say Microsoft holds a competitive advantage due to its comprehensive suite of AI offerings for enterprise cloud customers. Kash Rangan, an analyst at Goldman Sachs, noted that “Microsoft is the AI ringleader. It is the pre-eminent platform, catalyst and orchestrator for making models work… if it wins, they get to win.”

Nadella, who took charge of Microsoft in 2014, has overseen the company’s transformation from a PC software giant to a cloud computing leader, with the bulk of its revenues now coming from cloud and enterprise services. The company anticipates its suite of AI products to generate at least $13bn in annual revenue. Microsoft’s investment in OpenAI has also seen the company integrate OpenAI’s models into its Azure cloud computing infrastructure, developer tools, and productivity software.

While Microsoft faces risks, including OpenAI’s launch of its own developer platform, analysts say the company is well placed to exploit the shift towards AI. As Don Johnson, former head of Oracle’s cloud division, noted, “I don’t think we entirely anticipated this moment two years ago… it now seems obvious that AI would be a platform game and being ‘a platform is in Microsoft’s DNA’.”

The company’s move to offer an array of services to customers has also seen it announce a deal to offer rival Anthropic’s Claude Code through its GitHub Copilot service. This move is seen as a bid to offer developers more choice and flexibility in their AI offerings. Microsoft’s leadership has also emphasized the importance of openness and choice in the AI sector, with Jay Parikh, a former Meta executive and head of Microsoft’s Core AI division, stating that “openness and choice — that’s what all developers want, and that’s what we’re going to deliver.”

The conference also saw Microsoft announce a deal to offer xAI’s Grok family of AI models on its Azure Foundry platform, on the same commercial footing as OpenAI’s models. This move is seen as a bid to offer developers access to a wider range of AI models and tools. The company’s move to offer a comprehensive suite of AI offerings for enterprise cloud customers is also seen as a key driver of its competitive advantage in the sector.

Overall, Microsoft’s move to solidify its position in the AI sector is seen as a key driver of the company’s growth and competitiveness in the tech industry. As the company continues to invest in AI research and development, it is likely to remain a leader in the sector for years to come.