Microsoft has reported service degradation across multiple services in its Microsoft 365 Business and Enterprise editions. An investigation found that core processes on the affected servers were overloaded, causing them to stop responding. This led to a loss of capacity and disrupted connection components used by OpenAI and Anthropic. Microsoft has brought some servers back online and rerouted traffic to alternate paths, achieving limited recovery in certain regions. Meanwhile, the company is reducing infrastructure load in specific areas through traffic management to gradually restore capacity. The volume of failure reports has dropped from its peak.
