Microsoft CEO Satya Nadella says AI success is "more about getting intense users and intense usage" than seat counts

Microsoft said its AI strategy will be driven more by heavy usage than by seat counts as Copilot adoption continues to grow.

The company reported strong revenue and cloud growth, with Azure and Copilot among the key drivers, but gave limited detail on AI profitability.

Satya Nadella said Microsoft will keep investing heavily in AI infrastructure, even as it focuses on intense users and usage-based economics.

Investors were left unconvinced by the weaker-than-expected outlook, and Microsoft’s stock fell after the earnings update.