Updated
Updated · CNET · May 29
Microsoft Puts Copilot and AI Agents at Center of June 2 Build as Windows 12 Looms
Updated
Updated · CNET · May 29

Microsoft Puts Copilot and AI Agents at Center of June 2 Build as Windows 12 Looms

14 articles · Updated · CNET · May 29
  • June 2-3 Build in San Francisco is set to showcase Microsoft’s next AI push, with Satya Nadella opening the conference as Copilot and agentic AI dominate expectations.
  • Copilot is shifting from assistant to “async coworker,” Microsoft says, with Agent Mode already the default in Word, Excel and PowerPoint and likely to spread further across its products and Windows.
  • GitHub Copilot could get a new in-house coding model, while additional models for reasoning, images and speech are also expected as Microsoft broadens its AI stack beyond OpenAI.
  • Windows 12 remains uncertain, but Build is seen as a natural venue for at least a preview as Microsoft keeps adding AI features to Windows despite user complaints that Copilot has become intrusive.
  • Gaming is unlikely to feature prominently after Microsoft said in early May it would wind down Copilot on mobile and stop development of Copilot on Xbox consoles.
As OpenAI goes multi-cloud, is Microsoft's massive AI investment a move for dominance or a defense of its turf?
With a $190B spend, can Microsoft's in-house models truly out-innovate the open competition it now faces from its partners?

Microsoft Unveils Comprehensive In-House AI Suite at Build 2026 to Regain Market Lead and Reduce OpenAI Reliance

Overview

At Build 2026, Microsoft unveiled a new suite of in-house AI models, marking a strategic shift as the company faces growing skepticism from investors and increased competition from Google and Amazon. Central to this announcement is a major new AI coding model designed to enhance GitHub Copilot, directly challenging established players like OpenAI and Anthropic. This move comes as Microsoft’s partnership with OpenAI appears to be unraveling, prompting the company to reduce reliance on external partners and regain control over its AI future. The new models signal Microsoft’s commitment to innovation and restoring market confidence.

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