Microsoft, focusing on AI as of Jul 30, 2026, hit a record year and is building a new AI model system that splits up parts like context and memory, making its tools more flexible for different apps. The system aims for efficiency and resilience across the board. Copilot, Microsoft's AI assistant, has seen user satisfaction double, with engagement now matching Outlook and Teams. Additionally, by deploying more than a dozen new models, Microsoft is saving big on GPU costs.