Copilot hits 30 million paid seats as Microsoft's AI bet grows

Microsoft has long been a major presence in cloud computing, where Azure ranks second among the big three providers by market share. But in discussions of artificial intelligence investment, the company often falls to the wayside compared with its peers. The article frames Copilot, Azure, and Microsoft's stake in OpenAI as three separate channels through which the company benefits from the AI build-out, with Copilot described as perhaps the most obvious one rather than a truly secret weapon.

The Copilot story is tied to data privacy: because it keeps companies' internal, proprietary data private, IT departments can recommend it easily, and a free version bundled with all plans gives way to paid add-on integrations for some Microsoft apps. Azure's expansion and the $678 billion in remaining performance obligations reflect a large backlog of computing capacity, much of it attributed to OpenAI. Microsoft's estimated roughly quarter ownership of OpenAI adds a potential payout if that company goes public later this year.

The article's own conclusion is measured. It calls Microsoft a viable AI investment but warns not to expect incredible returns, since the company is not growing fast enough to mimic faster-growing AI computing companies. Whether that judgment holds is likely to depend on whether Copilot's paid-seat growth and Azure's expansion continue, and on what happens with OpenAI's potential public listing.