Microsoft Slashes AI Service Costs for Customers

Microsoft is dedicated to developing a comprehensive artificial intelligence ecosystem while actively working to reduce the costs associated with its AI-powered services. CEO Satya Nadella stressed the critical importance of optimizing the 'cost-to-outcome' frontier for customers, as the company navigates the global acceleration of AI adoption.

Nadella observed that 'Super Intelligence' is fundamentally altering organizational inputs and outputs, making inference and marginal cost key factors in software economics. He noted that customers will increasingly evaluate the cost of tokens against the results they generate.

The company's long-term strategy involves significant investments aimed at serving a diverse customer base. Concurrently, Microsoft is building the infrastructure to support its own high-value first-party products, such as Copilot, and enhancing operational efficiency.

Microsoft reported impressive financial results for FY2026, with total revenue reaching USD 331.8 billion, an 18% year-on-year increase. Microsoft Cloud revenue grew 27% to USD 214.4 billion, and Azure surpassed USD 100 billion for the first time, growing 41%. Microsoft 365 Copilot also saw strong adoption, crossing 30 million paid seats.