🧠 Food for thought

Implications, context, and why it matters.

The reorganization follows weak uptake and a shift toward in-house AI models

• Microsoft wants to raise Copilot usage after the Copilot app drew 6 million daily active users in February, versus 82 million for Google Gemini and 440 million for OpenAI ChatGPT 1.
• Adoption also lags in Microsoft’s business base. About 3% of commercial users with Office productivity software subscriptions have access to the Microsoft 365 Copilot add-on, a paid upgrade that adds Copilot features to Microsoft’s Microsoft 365 suite 1.
• The reshuffle also clears time for Microsoft AI CEO Mustafa Suleyman, who will spend more time building new AI models, the core technology behind assistants like Copilot 1.
• Over the next five years, Suleyman plans to build “enterprise tuned lineages” of models, meaning versions optimized for business use cases, which points to a long-term push to own more of the AI tech inside Microsoft products 1.

Microsoft frames the AI fight around costs and efficiency

• The leadership change aligns with Suleyman’s view that “the model is the product” 1.
• That view places the value in the underlying AI model’s capabilities plus efficiency, rather than in the Copilot app experience alone 1.
• Suleyman also aims for “highly COGS-optimized” models, meaning models built to cut cost of goods sold (COGS), the costs of running AI systems at scale, which signals a move away from capability at any cost toward sustainable performance for enterprises 1.
• Microsoft put Jacob Andreou in charge of Copilot across consumer and commercial, which supports a unified Copilot experience that can turn free Copilot Chat usage into paid Copilot licenses and broader adoption through a land-and-expand motion, a sales strategy that starts with an initial deployment then grows usage across an organization 2.