Former Microsoft VP says Microsoft missed the AI wave like the internet and mobile, as Copilot scales back in Windows 11

Microsoft spent $37.5B per quarter on AI. Less than 3.3% of Microsoft 365 users pay for Copilot.

OEMs stuffed NPUs into every laptop, and not a single k1ller use case materialized in Windows or Office.

That's a distribution-first company learning that distribution doesn't work when the product doesn't pull.

However: The same former VP who calls this a failure also says Microsoft's enterprise moat is unbreakable. Both things are true simultaneously and that tension is exactly why the next 18 months matter more than the last 18.