Microsoft AI Business Crosses $37B Annual Run Rate as Nadella Declares 'Agent Era'

American Bazaar·medium signal

Microsoft's AI business crossed a $37 billion annual revenue run rate, up 123% year-over-year, as Satya Nadella declared agents 'the next operating layer for work.' The 2026 Work Trend Index reports 78% of knowledge workers now use AI agents at least weekly, up from 12% in 2024. Microsoft 365 Copilot has over 20 million seats with weekly engagement now matching Outlook.