It’s the end of an era at Microsoft: Frank X. Shaw, the executive who oversaw the tech giant’s communications for nearly three decades, first at an external agency and for the last 17 years as one of its senior leaders, is leaving at the end of the year.

Shaw, 64, said he’s not retiring, although he doesn’t have another job lined up. He plans to stop working for a while, do some of the things he hasn’t had time for, and then decide what’s next.

“I have had a ringside seat at some of the biggest leadership, technology, and business transformations that have ever taken place,” Shaw said, sharing the news of his departure (under embargo) in a phone call Thursday afternoon. “I just feel incredibly fortunate.”

He said he had been discussing his potential departure for some time with Takeshi Numoto, Microsoft’s chief marketing officer, looking for the right moment.

Microsoft has not announced a successor for his role as chief communications officer. In a LinkedIn post, Shaw said the company will consider internal and external candidates.

A statement from Shaw’s colleagues in corporate communications credited him for his many years shaping Microsoft’s “voice and reputation with intelligence, candor and wit. His leadership and contributions to the company are too extensive to list, as is the number of journalists who have, at one point or another, used his name in vain.”

A former Marine Corps public affairs officer, Shaw has worked with all three of Microsoft’s CEOs. He started on the agency side, at Waggener Edstrom — now known as We. Communications — when Bill Gates was still running the company.

He built his reputation defending and advocating for Microsoft through some of its hardest stretches: the antitrust years, the Windows Vista backlash, the scramble to replace Steve Ballmer as CEO, and the weekend in 2023 when OpenAI’s board fired Sam Altman.

As the company’s top communications executive, he has also told the story of Microsoft’s reinvention under CEO Satya Nadella, from the LinkedIn and Activision Blizzard deals to an AI push that has carried Azure past $100 billion in annual revenue.

Evolving with technology: Shaw has spent much of his career closely watching the tech landscape and moving Microsoft’s voice into new channels as they emerged.

“We’re always thinking about what is the art and science of communications,” Shaw told PRWeek. “How do we reach our audiences most effectively in a changing environment?” He called the arc from print to radio and TV to social media and newsletters a “constant evolution of influence.”

He turned the corporate blog into a place where the company argued its own case, writing “Microsoft by the numbers” himself in 2010 — a stat-by-stat comparison against Apple and Google that TechCrunch dubbed “fantastic passive-aggressive.”

He and his team experimented with different and risky methods of telling the company’s story, holding mass briefings under embargo and publishing documents known as the “Book of News” in advance of its major keynotes and conferences. The prospect of a reporter having to answer to “fxs” was no doubt a factor in ensuring the news (mostly) didn’t leak.

Shaw hired Steve Clayton out of a technical role at Microsoft in London, where he had been blogging about the company unofficially out of frustration with how it was perceived, and made him chief storyteller. In the middle of the AI boom, Clayton and Shaw embraced the analog undercurrents in popular culture and launched Signal, a quarterly Microsoft print magazine for business leaders.

Clayton was VP of communications strategy by the time he left in January to become chief communications officer at Cisco, making Shaw’s planned departure the second high-profile exit from Microsoft’s comms team in a year.

Adapting to AI: In recent years, Shaw made his own team a testing ground for AI, publishing what worked and what didn’t. In a 2023 post he described using Copilot in Teams to pull story ideas out of conversations with spokespeople and anticipate coverage after interviews, and asking the AI to “poke holes in a statement we’re making on a tricky topic.”

He called it his corporal, a reference to Napoleon, who was said to bring one to meetings and ask whether his generals’ war plans made sense to him. A survey of 80 people in Microsoft’s communications and marketing organization found 84% did not want to go back to working without it.

Shaw was also known to use AI as a sounding board when a story frustrated him, offering him an objective take before he called and let a particular reporter have it.

He announced his departure Friday morning in a message to Microsoft’s communications team (reminding them he’s still there for a few months yet) and his public post on LinkedIn.

“Thank you as well to all the reporters, editors, writers, influencers and analysts who have put up with me over this time, enduring my early and late night calls, my off the record ‘no comments,’ my bad story ideas and my extended commentary on headlines and positioning,” he wrote.

“You all have incredibly hard and valuable jobs,” he added, “and while I’ve not agreed with everything said about us 😊 I appreciate you anyway.”

GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.

Just Don’t Call It an ‘Agentic OS.’ Given Microsoft’s one-pointed AI focus these days, it’s not surprising that the Windows organization is on the agentic train.

But Executive Vice President of Windows + Devices Pavan Davuluri has learned the hard way not to call Windows an agentic OS. He did so back in November 2025, via a tweet and blog post, and the customer backlash was quick and biting.

But Davuluri has not done a complete U-turn because of the criticism. Instead, he has changed how he talks about where Windows is going — which is still in an agentic direction.

“The user of Windows going forward will continue to be users … but it’s also going to add these agentic workloads,” the nearly 26-year Microsoft veteran Davuluri told GeekWire in a recent interview.

During his time at Microsoft, he’s held a variety of roles, from intern to General Manager of Surface, to Corporate Vice President of Windows Silicon & Systems Integration. He was appointed Executive Vice President of Windows + Devices in March 2026, reporting directly to CEO Satya Nadella.

Windows needs to evolve to support agentic workloads through new platform capabilities that the team is building under the covers, Davuluri said. These low-level capabilities, or “primitives,” affect how Windows handles security, identity, governance, observability, and performance when it comes to building and running agents natively.

These coming changes likely will affect the Windows file system, security model, PowerShell, and other foundational components.

Microsoft already is working on Windows identity and manageability to make them better able to service agents. Windows can assign agents a local ID, or a cloud-provisioned identity backed by Entra.

And it also has an early preview of technology known as Microsoft Execution Containers, meant to help secure agents by running untrusted code in sandboxes or virtual machines. It’s these system-level areas where the team is focusing first in preparation for a human+agent future, Davuluri said, rather than the UX/UI level.

Going Back to Basics. Windows has had a lot of very different leaders over the years, with very different management styles and priorities.

For his part, Davuluri said he plans to run the Windows and Surface teams with four principles in mind: Maintaining customer obsession; treating Windows as a complete end-to-end system (“full stack”); focusing on complete user experiences and workflows rather than individual features; and building Windows openly and transparently, with clearer communication about plans and priorities.

On the heels of his promotion to EVP, Davuluri committed publicly to the much-needed goals of improving Windows quality and reliability. In a blog post, he outlined some of the requested changes that his team would be making to Windows, ranging from fixing the way the Insider test program works, to more granular improvements like allowing users to reposition the Windows task bar.

And since then, the team largely has been delivering to the surprise and delight of many long-time Windows users.

Davuluri has also been working to shift the conversation from which new features are coming to a specific build to what are the outcomes Microsoft wants to enable for specific groups of Windows users.

“There is no one single sort of ring for a billion-plus users on the platform,” Davuluri said. Windows users encompass people who use the product in a variety of different ways, so “we need to get clarity in our minds on the things that we do that lift all boats that raise the entire platform — and things that we have to go do that are specific and unique to each of our sets of users based on how they primarily or typically use the device.”

Full-Stack Thinking. Is there still a role for Microsoft as a PC maker in the coming agentic future? Not surprisingly, given his heavily hardware-focused background, Davuluri insisted there is.

When Microsoft debuted its first Surface devices in 2012, officials said the company needed to build its own hardware to create reference designs and innovative form-factor examples for other Windows PC makers.

These days, most Surfaces that ship arguably are not better, spec- or design-wise, than other PCs. But Microsoft still needs to keep a hand in hardware design to understand the full stack, Davuluri claimed.

Surface plays a key role in how Microsoft develops platform abstractions, incubates support for technologies like pen, facial-recognition, and neural-processing units that later spread across Windows, and optimizes for silicon-to-cloud, he said.

While the company’s attempt to create a distinct category of “Copilot+” AI PCs fizzled, Microsoft continues to try to find AI-centric reasons to convince customers to choose Windows devices. Davuluri and others have referred to the idea of “unmetered intelligence” to attempt to make the case for running AI models locally on PCs.

This fall, Microsoft (and other Windows PC makers) plan to roll out new PCs built on the Nvidia RTX Spark platform. The coming Surface Laptop Ultra, which will be optimized for RTX Spark, is aimed at creators, developers and AI builders, all of whom — Microsoft is hoping — will be fueling the growth of its next target user category: Agents.

Note: Former Microsoft and AWS exec Harini Gokul serves on the Medina (Wash.) City Council.

Guest Opinion: Saturday, Aug. 15, was India’s 80th Independence Day. I marked it at the Indian Consulate in Seattle, at a celebration hosted by Consul General Prakash Gupta. The Indian American diaspora attended in full force, from community members to tech CEOs.

The event was open to the public, and the line to get in stretched over a block, a powerful, visible display of India’s economic success and soft power, right here in the Pacific Northwest.

But the more interesting story is not the celebration itself. It is who showed up to celebrate, and why.

Washington Gov. Bob Ferguson issued a statewide proclamation declaring Aug. 15 “India Day.” The mayors of Seattle, Bellevue, Kent, and SeaTac each signed their own municipal declarations, joined by the King County Council, which represents 39 cities across the region. U.S. Reps. Suzan DelBene and Marilyn Strickland sent official messages marking the occasion.

In person, state Sen. Tina Orwall was joined by the mayors of Redmond and Kent, alongside council members from cities including Redmond, Bothell, DuPont, and Medina.

What’s driving this goodwill?  There are now 5.2 million Indian Americans in the U.S., about 1.6% of the population, according to the latest Census Bureau figures.

In King County alone, more than 100,000 residents are of Indian origin; statewide, the figure is roughly 200,000. In cities like Redmond and Kent, the Indian American community makes up a meaningful share of the tax base, the school population, and the local business community.

This is one of the reasons elected officials are showing up. Because their Indian American communities are central to their growth story, a constituency whose economic and civic weight has become too significant to ignore.

This momentum has been building in the region for decades. What has changed is the altitude. The same talent pool that once filled engineering organizations is now filling CEO offices, board seats, and, in smaller but growing numbers, elected office.

Business success is turning into civic and cultural presence. Many of our Indian American leaders started in tech. Satya Nadella has run Microsoft since 2014. Anand Eswaran has led Veeam since 2021. Srini Gopalan became CEO of T-Mobile in November 2025.

And increasingly, this leadership is branching out. You see the impact in venture capital, through investors like the late S. “Soma” Somasegar, who moved from Microsoft to Madrona; and in culture, through the Seattle Orcas cricket franchise, launched in 2023 by an investor group including Soma, Satya, Sanjay Parthasarathy, Samir Bodas, and Ashok Krishnamurthi to grow the sport nationally.

With the change in demographics, civic influence is increasing as well. Redmond, Kent, and Bothell all elected Indian-origin council members in the most recent cycle. I represent the trend myself, now serving in my second term as a city council member for Medina, Wash.

My story is an all too familiar one. I came to the U.S. as an engineer two decades ago and grew up alongside this region’s hyperscalers, first at Microsoft, then Amazon. Today I sit on corporate boards and work across private equity and venture, and I have the honor to represent the city I live in. I am one small example of how we are scaling our impact and giving back to our adopted home.

Eighty years after India’s independence, the story of its diaspora in our state has moved well past individual success stories. It’s measurable now, at scale, in the leadership of some of the most important companies in the state, and in its growing influence across culture, economics, and politics.

This is why everyone from the governor’s office to city halls across Washington has decided this partnership is worth investing in and worth showing up for.

Microsoft is starting the process of combining its consumer and business Copilot apps into one, laying the structural foundation for an upcoming “Super App,” and trying to turn the company’s sprawling artificial intelligence brand into a unified product that people actually use. 

The move is part of the company’s effort to better compete with ChatGPT, Gemini and Claude, attempting to turn its legacy in workplace technology and cloud infrastructure into a stronger position in AI apps and agents. 

It also recognizes the blending of business and personal lives, and the reality that many people use the same AI assistants for both home and work.

The Copilot unification, detailed Thursday in support documents from the company, will take place gradually over the next several weeks, bringing major changes for some existing users. 

Several features of the consumer app are going away starting on Aug. 18, including Copilot Podcasts, Group Chat and Deep Research. Also disappearing is Mico, the expressive blob introduced less than a year ago to accompany the consumer Copilot’s voice mode, although Microsoft expects it to live on in some of Copilot’s education features. 

Commercial users will see far less change, with Microsoft calling them mostly cosmetic. For example, the Microsoft 365 Copilot app will be known simply as Microsoft Copilot, with a new icon and a new web address.

The unified app is a key step for the company, but it is not, on its own, the launch of the Super App. That larger move will bring together Copilot’s chat, AI coding, Cowork and new AutoPilot agents into a single app. Microsoft CEO Satya Nadella told investors on the company’s July 29 earnings call that the Super App will be out this quarter, meaning by the end of September.

The broader initiative is an attempt to remake and unify Copilot under Jacob Andreou, the former Snap executive Nadella put in charge of the product in March. Mustafa Suleyman, the DeepMind and Inflection co-founder who had run Microsoft’s consumer AI efforts since 2024, shifted to a narrower role at the time, focused on developing new AI models. 

Andreou detailed the move in a memo to his 11,000-person organization in early July, as reported by The Information, citing the need to move on from features that weren’t gaining traction, and “earn and respect the right to exist in our customers’ lives.” 

Microsoft said last month that Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million in April, with net seat additions more than doubling quarter over quarter. That amounts to just about 7% of the more than 450 million commercial Microsoft 365 paid seats the company reported in January. 

Microsoft doesn’t disclose how many people use the consumer Copilot app, but Sensor Tower estimated 38.5 million monthly users in July, a fraction of ChatGPT’s 1 billion monthly users.

Here is more on what Copilot users can expect:

Gradual rollout: Migration will begin this week with a small group of Windows Insiders and will expand more broadly next week. Worldwide rollout will start with mobile and web in mid-August; Windows and Mac apps will follow in mid-September. Users will see the change at different times, and Microsoft says that’s expected. Mobile users will need to download an updated app.

Unified app and name: The consumer and commercial apps will become a single app called Microsoft Copilot, with a refreshed icon. The commercial web address will move from m365.cloud.microsoft to copilot.cloud.microsoft, with automatic redirects beginning in late August.

Work and personal will stay separate: Users will be able to sign in with a personal account, a work or school account, or both, and switch between them in the app.

Microsoft says data won’t flow between the two, employers won’t be able to see personal activity, and enterprise security, compliance and administrative controls will remain unchanged.

Chats and content will persist: Chat history, images and other content created in the consumer app will migrate to the new one. Files shared with or generated by Copilot will move to OneDrive, where additional storage requires a paid plan.

Deep Research will get only a partial replacement: Deep Research generates long, detailed reports by searching the web and pulling sources together. It’s being retired for consumers, and the substitute, a similar tool called Researcher, will be available only to subscribers of Microsoft 365 Premium, a higher tier than the Personal and Family plans.

Personal and Family subscribers will still be able to open their old reports from chat history and save them to Word, but won’t be able to create new ones.

Podcasts and Group Chat will go away: Group chat threads, messages and the images created in them will disappear after Aug. 18. Copilot podcasts — the AI-generated audio discussions the app made from websites and uploaded documents — will need to be downloaded individually from the podcast library before then.

Some features will be temporarily unavailable: Copilot Health may be missing for some consumer users mid-migration. Microsoft says it will return, and that heavy Health users will be migrated later so the feature will be waiting when they arrive.

Free limits may tighten: Microsoft says core Copilot chat will stay free “subject to capacity and limits,” but that some users will hit those limits sooner than they do today. Those who do can buy a paid Microsoft 365 plan, such as Personal or Family, which come with higher usage limits.

Implications for IT departments: Recall, the Windows feature that periodically captures screenshots of a user’s activity for subsequent AI searching, can be configured to leave certain apps out of those screenshots. Organizations that excluded the old Copilot app will need to apply that setting again to the new one. The exclusion won’t carry over automatically. 

Editor’s Note: This story has been updated since publication to clarify which features may be temporarily missing during the transition, after Microsoft revised the information it provided.

This week on the GeekWire podcast: Microsoft and Amazon both reported quarterly numbers, and both stocks rose on cloud results that beat expectations. Is all that AI spending paying off? And in related news, Microsoft sees a rare annual headcount decline, hitting product R&D hardest. 

Plus: Satya Nadella builds a Power BI dashboard out of an analyst’s research report, and touts it on the earnings call to make a bigger point. Jeff Bezos names Amazon’s chips business as the long-awaited fourth pillar. And AI House managing director Jacob Colker delivers a much-needed pep talk for Seattle tech, calling on the region to recognize and build on its strengths. 

Related stories and links

Microsoft and Amazon earnings

• Microsoft Azure tops $100B in annual revenue as record AI spending cuts into cash flow
• AWS is ‘booming,’ but Amazon’s free cash flow turns negative on record AI spending
• Microsoft R&D jobs drop for second straight year as total headcount falls for first time in a decade
• Which Microsoft businesses are growing and shrinking, according to obscure table in regulatory filing

Amazon’s fourth pillar

• Jeff Bezos says this business is becoming Amazon’s next ‘pillar’

A rallying cry for Seattle tech

• Watch: A venture capitalist’s passionate speech, a rallying cry, really, about Seattle
• Seattle’s AI2 Incubator rebrands as AI House, and adds key investor as managing director
• ‘I’m tired of that narrative’: Seattle VC pushes back on tech exodus talk

The Washington tech ecosystem

• New map traces Washington state’s tech ‘universe’ to a few key hubs, and shows what’s at risk
• After hiring AWS exec and raising $107M seed round, Virginia startup plants flag in Seattle area
• GeekWire’s Seattle engineering centers list

Subscribe to GeekWire in Apple Podcasts, Spotify, or wherever you listen.

The first thing I do when Microsoft’s 10-K or 10-Q comes out is hit Ctrl-F and go waaaay down to the section called “Revenue, classified by significant product and service offerings.” It’s on Page 85 of the 10-K that came out Wednesday with its quarterly and annual results.

From my perspective, this gives the clearest view of what’s actually happening in Microsoft’s business. It groups things into categories and product names that match a real-world understanding of the company, as opposed to the mumbo jumbo you have to decode otherwise.

Microsoft reports its results in three broad segments: Productivity and Business Processes, Intelligent Cloud, More Personal Computing. Businesses like Azure, Xbox, Windows and LinkedIn all basically disappear inside them, until you dig into the filing.

Overall, for the fiscal year ended June 30, Microsoft’s revenue increased 18%, or $50.1 billion, to $331.8 billion. Here is what the 10-K table shows about the real drivers of the business.

Two business lines are driving nearly all of Microsoft’s growth.

Of the $50.1 billion in revenue that Microsoft added for the fiscal year, $31 billion came from Server products and cloud services, accounting for 62% of the company’s growth.

This category includes Azure, along with SQL Server, Windows Server, Visual Studio, GitHub and Nuance. Microsoft doesn’t detail Azure revenue in its financial statements, but CEO Satya Nadella said on the earnings call that Azure passed $100 billion in annual revenue for the first time this year.

At total revenue of $129.4 billion, this is by far Microsoft’s biggest business, accounting for nearly 40% of its annual revenue.

The second biggest growth came from Microsoft 365 Commercial, which added $14.2 billion in revenue, up 16% to $102 billion. Microsoft 365 Commercial covers the business subscriptions: Office, Teams, SharePoint, Exchange, security and compliance, and Microsoft 365 Copilot.

Taken together these two business lines produced 90% of Microsoft’s growth for the year.

They’re also where the company is monetizing AI most successfully: Azure, AI infrastructure and GitHub Copilot in server and cloud; and Microsoft 365 Copilot in Microsoft 365 Commercial.

Two of Microsoft’s longtime businesses got smaller.

• Windows and Devices revenue fell $230 million, to $17.1 billion. Once the biggest growth engine for the company as a whole, the PC operating system business has been flat for the past four years, using the categories as Microsoft now defines them.
• Xbox revenue fell $1.7 billion, to $21.8 billion. That’s the first annual decline since Microsoft completed its $69 billion Activision Blizzard acquisition. It comes as Microsoft overhauls the business, cuts jobs and takes a write-down on unspecified Xbox assets.

Other notes and observations from the table:

• LinkedIn, at $19.8 billion, now generates more revenue than Windows and Devices. It passed Windows in fiscal 2025 and extended the lead this year, growing 11% while Windows declined.
• Microsoft 365 Consumer was the fastest-growing category after server products, up 24% to $9.2 billion.
• Search advertising grew 9% to $15.2 billion, and is closing in on Windows and Devices.
• Dynamics grew 15% to $9 billion. Enterprise and partner services, the consulting business, grew 6% to $8.3 billion.

Thoughts? Let me know on LinkedIn. Here’s our coverage of the earnings.

Microsoft’s Azure cloud business grew 43% last quarter, blowing past the company’s own forecast and surpassing $100 billion in annual revenue for the first time, providing fresh evidence of the potential for artificial intelligence to fuel new growth for the tech giant.

The company’s results for its fiscal fourth quarter also showed the price of that growth: capital spending hit a record $41 billion, largely to support the company’s AI buildout, and free cash flow sank 23% even as operating profits jumped 18%.

And in a new twist, Microsoft shares rose more than 5% in after-hours trading, in contrast with the recent pattern in which the company’s strong results were met with selloffs that pushed its stock near a one-year low.

Companywide results: Overall, Microsoft reported revenue of $90 billion for the quarter, up 18% from a year ago, and net income of $35.8 billion, up 31%. Analysts had expected $87.7 billion in revenue, a figure that was already at the top of Microsoft’s own guidance range.

Microsoft’s adjusted earnings of $4.74 per share topped the $4.24 that analysts expected, according to Yahoo Finance. That included a $3.2 billion gain on Microsoft’s investment in Anthropic, part of a 27-cent benefit from one-time items. Even excluding those items, the company said, it exceeded expectations across revenue, operating income and earnings per share.

Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million last quarter. That’s still less than 7% of the roughly 450 million commercial Microsoft 365 seats, a gap that has drawn investor skepticism all year.

Microsoft’s backlog grew 84% to $678 billion. Known as remaining performance obligation, or RPO, it’s the value of contracts that customers have signed but that Microsoft hasn’t delivered on yet, basically the business Microsoft has already locked in but has yet to record as revenue.

Investors have been worried for a year that too much of it came from a single customer, OpenAI. Microsoft said all of the $51 billion increase over the prior quarter came from customers other than the big AI model companies. Setting OpenAI aside, the backlog still grew 25%.

Windows OEM and Devices revenue declined 7%, hurt by slower PC demand and a tough comparison with last year’s Windows 10 upgrade wave. The decline would have been steeper, but PC makers built more machines to get ahead of rising memory prices, and Microsoft collects its Windows fee when a PC is built rather than when it’s sold.

Xbox content and services revenue fell 10% and Xbox hardware fell 13%. Microsoft also wrote down the value of unspecified Xbox assets. The company grouped that charge with severance costs and lower-than-expected costs from its retirement program — a net $500 million hit to operating income — and declined to say how much of it was Xbox or what was written down.

Microsoft on Monday unveiled Project Perception, an AI cybersecurity system built to defend against AI-driven attacks, aiming to keep pace with both hackers and its technology rivals.

The system, which enters public preview Aug. 3, coordinates three sets of AI agents: red team agents that hunt for paths an attacker could take, blue team agents that determine which risks matter and green team agents that make fixes.

It’s based on MAI-Cyber-1-Flash, a new AI model designed specifically for cybersecurity, which the company says does most of the work of larger models at half the cost. It runs in conjunction with OpenAI’s GPT-5.4, which Microsoft reserves for the 10% of tasks it calls exceptionally hard.

Microsoft says the combination scores 96% on CyberGym, a benchmark measuring how well AI systems find real vulnerabilities in large codebases.

The company did not give the model to independent testers before releasing it, according to The New York Times. Microsoft says the model was independently assessed by a third party.

The model is available at launch only to customers of MDASH, Microsoft’s AI-powered tool for finding vulnerabilities in code.

Microsoft CEO Satya Nadella said in a post on X that the initiative is an example of how the company can get better results per dollar by not locking its security systems to a single AI model family.

“This is the benefit of building the harness, context/signals, and action space separate from one model family,” he wrote. “By combining specialized models and data with the right agents, tools, security context, and harness, we can advance the frontier of cost to outcome.”

The initiative was announced Monday morning at an event in San Francisco by Hayete Gallot, the EVP for Microsoft Security, joined by colleagues including Mustafa Suleyman, CEO of Microsoft AI.

In a blog post, Gallot wrote that security needs a new “Cyber Stack,” and that approaches built for a world of human actors cannot keep pace with AI, agents and machine-speed attacks.

In an interview last week for GeekWire’s Microsoft 2.5 series, Gallot said that MDASH was effectively Microsoft’s first step into agentic security.

No system can reason directly over 100 trillion signals a day, so Microsoft is distilling them into a graph that agents can navigate, Gallot said, routing each threat to whichever model handles it best. In practice, this means software can quarantine a device or cut off access on its own.

The announcement comes days after OpenAI disclosed that two of its AI models broke out of a testing sandbox and hacked into Hugging Face, the AI development platform.

Rivals have been more cautious, under government restrictions. Two of the four systems Microsoft benchmarked against, Anthropic’s Mythos 5 and OpenAI’s GPT-5.6 Sol, are limited to small groups of government-approved customers.