Microsoft kicked off its annual Build developer conference today with a sweeping set of announcements focused on artificial intelligence, developer empowerment, and the evolution of Windows as the premier platform for AI-driven experiences. Microsoft Build 2025, held in Seattle and streamed globally, showcased Microsoft’s vision for an “agentic” future-where AI agents, open standards, and seamless integration drive productivity and innovation across devices and the cloud.
AI at the Core: Expanding Model Choice and Developer Tools
Microsoft revealed that it will now offer a broader selection of AI models hosted in its Azure data centers, giving customers and developers more flexibility and reducing dependence on any single provider. The headline announcement: a new AI coding agent designed to automate and assist with software development, promising faster, more reliable coding for teams of all sizes.
“Our north star is clear: to make Windows the best platform for developers, built for this new era of AI, where intelligence is integrated across software, silicon and hardware,” stated the Windows Developer Blog.
Windows: The Platform for AI Development
Windows took center stage with new capabilities aimed at making it the go-to environment for AI innovation:
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LoRA Fine-Tuning for SLMs: Developers can now fine-tune small language models like Phi Silica using their own data, enabling highly customized AI applications.
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New APIs for Semantic Search and Knowledge Retrieval: These APIs unlock powerful natural language and retrieval-augmented generation (RAG) scenarios, streamlining the integration of advanced AI into Windows apps.
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Model Context Protocol (MCP) Support: Native support for MCP allows AI agents to interact directly with Windows applications, enhancing automation and user experiences.
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Open Sourcing Windows Subsystem for Linux (WSL): By open-sourcing WSL, Microsoft invites the developer community to contribute and deepen Linux integration on Windows.
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App Actions and Enhanced Security: Developers gain new tools for building actionable, discoverable app features, alongside SDKs for Virtualization Based Security and post-quantum cryptography.
Microsoft Store: New Growth Tools for Developers
The Microsoft Store announced free developer registration, expanded analytics, and new campaign tools to help app creators reach wider audiences. An “AI Hub” now highlights innovative AI-powered apps, and an “AI Badge” system helps users discover the latest in intelligent software.
Open Standards: Model Context Protocol and NLWeb
Microsoft is doubling down on open standards with the expansion of MCP across GitHub, Copilot Studio, Dynamics 365, Azure AI Foundry, and Windows 11. MCP standardizes how AI agents access data and services, while a new registry service and secure authorization features make integration safer and easier.
The company also introduced NLWeb, an open project to help websites offer conversational AI interfaces using the model and data of their choice. Microsoft likens NLWeb’s role for the “agentic web” to what HTML provided for the traditional web-enabling richer, AI-driven online interactions.
Microsoft 365 Copilot: Customization and Multi-Agent Orchestration
A new low-code capability in Copilot Studio allows organizations to fine-tune AI models with their own data and workflows, making it easier to tailor AI agents for specific business needs. Multi-agent orchestration features now let multiple AI agents collaborate on complex tasks, all under human oversight. The Copilot Wave 2 update, including the new Copilot app, Copilot Notebooks, and specialized agents like Researcher and Analyst, is rolling out to customers starting today.
SQL Server 2025: AI-Ready Enterprise Database
Microsoft also announced the public preview of SQL Server 2025, designed to help enterprises build secure, modern AI applications using their own data, whether on-premises or in the cloud.
What’s Next?
While no new Surface hardware was unveiled during the keynote, Microsoft recently launched new, smaller, and more affordable Surface Pro and Surface Laptop devices earlier this month. Additional announcements and technical deep-dives are expected throughout the Build conference.
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