Overview
- At Build 2026, Microsoft unveiled seven proprietary models including MAI‑Thinking‑1 and MAI‑Code‑1 and introduced Microsoft Scout, signaling a public move away from reliance on outside LLM suppliers.
- The product push follows a strong fiscal Q3 showing in which Microsoft said AI annual recurring revenue grew 123% to more than $37 billion and quarterly EPS beat expectations.
- Microsoft disclosed large infrastructure plans, routing GPU capacity into internal R&D and signaling roughly $190 billion in calendar‑year data‑center CapEx to support model training and cloud services.
- Wall Street reacted positively with many analysts raising price targets and maintaining Buy ratings while some executives sold shares recently, prompting investor attention to timing and governance questions.
- Microsoft also announced Majorana 2 topological quantum‑chip progress and a target for scalable quantum systems by 2029, reflecting a parallel long‑term bet on new compute architectures.