Microsoft once basked in a moment of glory, a feat largely attributable to CEO Satya Nadella's visionary foresight. At the close of 2022, the advent of ChatGPT presented Microsoft with a golden opportunity. Nadella, with unwavering determination, invested in OpenAI, facilitating the seamless integration of cutting-edge AI models into Microsoft's software ecosystem. These models were then exclusively offered through the Azure cloud platform, giving Microsoft a significant head start.

However, the once-cordial relationship between Microsoft and OpenAI began to cool. Subsequently, Microsoft redirected its investment towards Anthropic. In the meantime, OpenAI forged partnerships with Oracle, Google, and Amazon. Microsoft's strategy of casting a wide net, while effective in diversifying risks, has inadvertently diluted its initial advantage in the AI arena. Since reaching its peak stock price in October of the previous year, Microsoft's shares have witnessed a cumulative decline of roughly 11%. By early 2026, Microsoft's stock price had been trading in a sideways pattern. Following the release of the earnings report, after-hours trading took a nosedive, plummeting by 8.1%, primarily due to capital expenditures surpassing market expectations. Despite total sales exceeding forecasts and profits soaring by nearly a quarter, these positive developments were insufficient to counterbalance the adverse impact of the unexpectedly high capital expenditures.

In the current competitive landscape of the AI field, the dynamics have shifted dramatically. Google has made aggressive strides in consumer application scenarios with its Gemini model, while Anthropic's prowess in code generation stands at the pinnacle of the industry. For Microsoft to reclaim its former glory and assert itself as a formidable contender, it must emulate Google's approach and seek a breakthrough.