Microsoft’s early AI lead has become a test of faith

The FT argues Microsoft’s Copilot strategy, built on its OpenAI tie-up, hasn’t yet translated into clear revenue gains. Azure growth is slowing, enterprise willingness to pay for Copilot remains uncertain, and in-house model efforts lag. The AI premium the market gave Microsoft now hinges on hard financial delivery.

Why it matters: FT's commentary nails the core tension in Microsoft's AI narrative: the valuation premium from the OpenAI tie-up is still priced in, but Azure growth and Copilot conversion haven't delivered yet. Hits all three HKR axes, but it's analysis not primary data — lands at the featur...