Microsoft Declares 'Copilot Code Red': Nadella Deploys Emergency Overhaul to 'Move From AI Demos to Daily Use'

Benzinga·high signal

Internal memo reveals Microsoft CEO Satya Nadella has declared a 'Copilot Code Red' to fix lagging adoption, with the E7 suite launching May 1 and enterprise Copilot adoption rates well below expectations despite massive investment. The overhaul includes hiring former Snap executive Jacob Andreou to run consumer/commercial Copilot while Suleyman focuses on superintelligence model development. BNP Paribas analyst noted 30% of new cloud capacity last quarter was allocated internally for Copilot and LLM development — suggesting Microsoft is its own biggest Copilot customer.