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Research Alert: Key Takeaways From Microsoft Build Developer's Conference

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

MSFT CEO Satya Nadella delivered his keynote at Build Conference, introducing 7 new MAI models led by MAI-Thinking-1 with 35B parameters for complex instructions and code generation. The event progressed as expected after reported leaks, demonstrating internal AI tool development for enterprise ecosystem. We view this strategic shift toward in-house models as positive for reducing MSFT's dependence on third-party providers like OpenAI, with models integrated into PowerPoint and OneDrive. Central to MSFT's vision is agentic AI executing tasks autonomously, unveiling Autopilots with Microsoft Scout as flagship always-on assistant across Microsoft 365. The company introduced Microsoft IQ, now available across GitHub Copilot and Copilot Studio, serving as context layer with components including Work IQ and Web IQ. We believe quantum computing progress is encouraging, with Majorana 2 chip achieving 20-second qubit lifetimes and cutting MSFT's scalable quantum computing timeline in half to 2029.

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