Microsoft is building a new AI model system that separates harness, context, memory, and action space from any single model family, allowing seamless substitution of models to improve the cost-to-outcome curve and business continuity, Chairman and CEO Satya Nadella announced. The company reported annual revenue of $331 billion, up 18%, with Microsoft Cloud revenue rising 27% to $214 billion and Azure revenue crossing $100 billion, growing 41%. Nadella said Microsoft is already using this architecture across its products and making it available through Foundry. Copilot usage is accelerating, with user satisfaction scores doubling over the last three quarters and latency reduced by 25% in the latest quarter. The number of conversations per user nearly doubled from a year earlier, while customers with over 50,000 Copilot seats increased sevenfold year over year, and those deploying Copilot to a majority of information workers rose nearly 75% from the previous quarter. Microsoft plans to launch a unified Copilot "super app" spanning consumer and commercial users later this quarter.