Microsoft is offering deep discounts to large corporate customers to accelerate AI assistant adoption. This strategy sacrifices near-term per-seat revenue to achieve wide-scale integration. The move aims to establish long-term customer dependency on Microsoft AI tools. Additionally, the company is developing a revamped, unified application for its various AI services.
The company currently holds $678 billion in contracted but not-yet-booked revenue. This backlog grew 84% as of the fourth quarter of fiscal 2026. Microsoft plans to double its data center capacity to meet surging demand. The company will complete this infrastructure expansion within two years.