Microsoft Is All-In on Agentic AI and Vibe Coding Now That It's 'Working'
Microsoft has made agentic AI and usage-based pricing central to its strategy, with CEO Satya Nadella noting that AI features like edit with Copilot in Microsoft 365 are now effective due to improved models and infrastructure. The company reported strong adoption of AI tools, with nearly 90% of Fortune 500 companies using its low-code/no-code agent platforms and Bing reaching 1 billion monthly active users. GitHub Copilot is transitioning to a usage-based pricing model with AI credits, while Microsoft's revenue rose to $82.9 billion amid growing investments in AI infrastructure.
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During Microsoft's latest earnings call on Wednesday, CEO Satya Nadella perhaps unintentionally summed up the current state of the company's massive agentic AI push. "It sort of didn't work until it started working," Nadella said, referencing the Agent Mode feature in Microsoft Excel, "and that's just because the model showed up."Agent Mode, a feature that uses AI to create and edit Excel workbooks in tandem with your actions, is now the default mode for Microsoft 365 Copilot and Premium subscribers in Excel, Word and PowerPoint as of last week.
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