Microsoft Ditches Old Structure for Two New Segments: Agents and Infra

Microsoft is reorganizing its structure to focus on two main areas: AI and infrastructure. The company's CEO, Satya Nadella, announced that the previous three segments - Productivity and Business Processes, Intelligent Cloud, and More Personal Computing - will be replaced by 'Agents and Infra' and 'Devices and Consumer'.

'Agents and Infra' covers Microsoft's AI models, GitHub, Azure, and Microsoft 365, which features Copilot. This segment is expected to generate around $75 billion in revenue for the first quarter of next year.

'Devices and Consumer' includes Xbox and Windows, as well as search and advertising divisions like Bing and LinkedIn. It's projected to bring in about $15 billion in revenue during the same period.