- Microsoft shifts to in-house AI models to cut third-party license and API fees; AI head Mustafa Suleyman says the move targets lower costs and improved margins for MSFT.
- MSFT up ~1.4% premarket as investors reassess AI bets; ING warns slower EPS growth, lower multiples, higher infra spending and depreciation, reduced buybacks, and weaker free cash flow.
- Microsoft warns Xbox gaming revenue to drop about 7% for the fiscal year; Xbox hardware revenue fell 33% in fiscal Q3, weighing on Xbox unit profitability and segment results.
- Microsoft (MSFT) touts AI orchestration routing tasks across models to cut costs, plus Copilot, Azure hosting for frontier models, and Foundry AI to enable flexible, lower-cost AI deployments.
- Microsoft (MSFT) launched an AI literacy program in UAE via Alef Education, upskilling about 25,000 educators across 710 schools May 11–June 30, 2026, boosting AI adoption in teaching.
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Key facts: Microsoft Moves to In‑House AI; MSFT +1.4%; Xbox Revenue -7%
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Microsoft shifts to in-house AI models to cut third-party license and API fees; AI head Mustafa Suleyman says the move targets lower costs and improved margins for MSFT.MSFT up ~1.