That’s not to take away from the amazing things that Microsoft has done in AI. They announced the new Windows AI Foundry at Monday’s Build 2025 developers conference. This new collective initiative rebrands, repurposes, and broadens the scope of previously introduced Windows Copilot Runtime. It’s designed to drive the company’s already massive $13 billion annualized AI revenue even higher. Microsoft’s partnership with OpenAI has been critical in this expansion, demonstrating their serious commitment to being an innovator in generative AI technology.
Then Microsoft’s CEO Satya Nadella took the stage and reiterated the company’s new focus on helping others innovate. “We are innovating at every level of our business,” he said, pointing out how AI has played a big role in improving Microsoft’s cloud platform and its revenue growth.
Windows AI Foundry is a significant step forward for the Windows Copilot Runtime service. This service, originally launched last May, is now poised to greatly expand its abilities. This expansion, which is meant to give developers advanced tools and resources to build AI into their applications,
Perhaps the most interesting aspect of Windows AI Foundry is Foundry Local. It can intelligently identify the target device hardware such as CPU, GPU and NPU, and recommend supported models accordingly for developers to leverage. This new functionality is designed to make development faster and more efficient, helping developers harness the power of AI technology to drive innovation.
Additionally, Microsoft stated that the new platform will “bring the power of AI models […] to client devices,” potentially transforming how applications operate on personal computers. This new processing capability, combined with intelligent automation of repetitive tasks, would allow enhanced, faster transaction processing and an overall better user experience.
Microsoft’s recent announcement coincides with its second-quarter results, where the strength of its cloud and AI services was highlighted as a driving force behind the company’s financial performance. Microsoft continues pushing the envelope and adding to their product suite. Industry experts believe this will result in sustained and accelerated growth in AI-generated revenue and improved developer engagement.
Kyle Wiggers is AI Editor at TechCrunch, based in New York City. He emphasized that Microsoft’s progress is an encouraging sign for the future of AI’s integration into software development. Suzi Wiggers, founder of a growing partnership with a music therapist. Together, they know what it takes to bring technological innovations to varied industries including healthcare and the creative arts.