Microsoft is gearing up for its annual Build developer conference, running from May 19 to 22, 2025, where the spotlight will be firmly on artificial intelligence and its deepening integration across the company’s products. The event, which will be streamed online for free, is expected to showcase major updates to Copilot, Microsoft’s generative AI assistant, and reveal new capabilities in Windows 11 and Azure.
What to Expect at Build 2025?
AI and Copilot Take Center Stage
AI is set to dominate the agenda, with Copilot likely to headline the event. Microsoft is expected to unveil significant enhancements to Copilot, including more “agentic” features-AI agents capable of autonomously performing routine PC tasks. For instance, there are hints of a new Action button in the Copilot client for Windows, which could automate everyday actions like adjusting system settings or managing files.
Windows 11 and AI Agents
Windows 11 will see deeper AI integration, particularly through AI agents embedded in the operating system. Microsoft has already announced an agent within the Settings app that can automatically tweak system configurations. The company is also expected to provide tools for developers to embed their own AI agents into third-party apps, potentially transforming how users interact with software on Windows.
Copilot’s AI Under the Hood
Amid reports of a strained relationship with OpenAI, Microsoft is exploring alternative AI models from xAI, Meta, Anthropic, and DeepSeek as possible replacements for OpenAI’s technology in Copilot. Additionally, Microsoft has developed its own family of AI models, internally called MAI, which reportedly perform on par with leading models from OpenAI and Anthropic. These in-house models could soon be offered via API, allowing third-party developers to build on Microsoft’s AI infrastructure.
Azure and Custom AI Chips
On the cloud side, Microsoft may announce the next generation of its custom AI chips. Following the debut of the Azure Maia 100 AI Accelerator, rumors suggest a “Maia 2” chip is in the works, with Marvell contracted for manufacturing. These chips are designed to reduce Microsoft’s reliance on NVIDIA GPUs and optimize AI workloads in Azure data centers.
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Subscription Price Increases and AI Justification
Microsoft recently raised prices for its software subscriptions-including Windows 365, Office 365, and Microsoft 365-by 5%, citing the integration of Copilot AI as a major factor. The company argues that new AI-powered features, such as automated document creation, advanced data analysis, and intelligent email management, justify the higher costs. However, this move has sparked debate among users, especially as Copilot is now bundled into standard plans, making the price hike inevitable for all subscribers.
Summary
- Developer Focus: Build 2025 will continue to emphasize tools and APIs for developers, especially those interested in integrating AI into their own applications.
- Hardware Updates: While Microsoft recently launched new Surface hardware, this year’s conference will focus more on software and cloud services than on physical devices.
- AI Ecosystem Expansion: Microsoft’s push to develop and deploy its own AI models, alongside third-party options, signals a strategic shift to reduce dependency on any single AI provider and to offer more flexibility and cost savings for itself and its customers.
Microsoft Build 2025 is shaping up to be a pivotal event for the company’s AI ambitions. Expect major announcements around Copilot’s evolution, deeper AI integration in Windows, new developer tools, and possibly a new generation of custom AI chips for Azure. With rising subscription prices, Microsoft will be under pressure to demonstrate that its AI investments deliver real value to both consumers and businesses.
