Microsoft posts record revenue, CEO Satya Nadella says AI super app is next

Microsoft just had a record year when it comes to finances, with over $330 billion in revenue. Now, Microsoft CEO Satya Nadella has announced that the company will soon launch an AI super app that takes on the likes of OpenAI and Anthropic.Satya Nadella has revealed plans for an AI super app after Microsoft posted record revenue.Microsoft is having a solid year when it comes to finances. After investing billions of dollars in infrastructure and its cloud business, the tech giant reported stronger-than-expected figures. Microsoft’s core cloud business, Azure crossing $100 billion in revenue for the first time. Now, Microsoft CEO Satya Nadella has announced that the company will soon launch an AI super app as it takes on the likes of OpenAI and Anthropic.Satya Nadella shared details from Microsoft’s report on X, calling it a “record fiscal year for Microsoft.” He revealed that the company’s annual revenue crossed $331 billion, with the total cloud business bringing in $214 billion. To give you some context, Egypt's nominal GDP stood at $349 billion for 2025. Satya Nadella shared revenue details on X. Microsoft AI super app in the makingDuring the earnings call, Satya Nadella teased that Copilot was moving quickly beyond a chatbot, bringing it more in line with that of an AI super app. "This quarter, we are bringing Copilot experiences together, including code, in one super app... This is a major step forward, and I look forward to sharing more soon,” he said.That is, soon you may see Microsoft have a super app that lets you do a lot more with AI apps in a single interface. This would put the company in a direct contest against OpenAI and Anthropic, two AI labs that dominate enterprise AI use. Previous reports indicate that this super app would bring together the Copilot chatbot, GitHub Copilot coding assistant, Copilot Cowork and Autopilot system. Think of it as something similar to OpenAI’s ChatGPT Work app that combines ChatGPT with its coding tool Codex.Satya Nadella revealed that Microsoft was becoming more independent when it comes to AI models along with its own chips. "That's really the enterprise design architecture that we are going to evangelise. We ourselves are using it," Nadella said. Microsoft previously relied on OpenAI for core AI models when it came to products like Copilot. The company was an early investor in the AI startup, and retains an equity stake. Microsoft stated that Copilot adoption has risen. Paid seats for M365 Copilot had crossed 30 million, up from 20 million in the previous quarterMicrosoft has more free cash flow than Google, MetaDuring the earnings report, Microsoft stated that its free cash flow stood at $19.6 billion. This was above analysts' estimate of $13.44 billion, but down 23 per cent from a year earlier.To give you some context, Google recently turned cash negative for the first time in 22 years, while Meta saw a 91 per cent drop in cash reserves, as companies continue to spend aggressively in AI.Microsoft also shared long term spending plans. The company said it will now spread long-term data centre leases over 25 years instead of 15, an accounting change that lowers reported annual capital expenditure.Microsoft said its actual spending plans have not changed and forecast reported capital expenditure of $50 billion for the first quarter of fiscal 2027 and $175 billion for calendar 2026. Both figures were below market expectations, and the calendar 2026 number was below Microsoft's earlier estimate of $190 billion.Microsoft’s cloud business was reported to have a backlog of $678 billion from $627 billion in the previous quarter, and the company said the entire sequential increase of about $50 billion came from commitments by companies outside the leading US AI model makers.- EndsPublished By: Armaan AgarwalPublished On: Jul 30, 2026 09:22 IST