Former Microsoft VP Says Company Missed AI Wave as Copilot Scales Back

Former Microsoft VP says Microsoft missed the AI wave like the internet and mobile, as Copilot scales back in Windows 11 Microsoft spent $37.5B per quarter on AI. Less than 3.3% of Microsoft 365 users pay for Copilot. OEMs stuffed NPUs into every laptop, and not a single k1ller use case materialized in Windows or Office. That's a distribution-first company learning that distribution doesn't work when the product doesn't pull. However: The same former VP who calls this a failure also says Microsoft's enterprise moat is unbreakable. Both things are true simultaneously and that tension is exactly why the next 18 months matter more than the last 18.