Microsoft Corp. Microsoft (MSFT) used its latest developer-focused event to roll out new AI models, agent tools, Windows integrations, and quantum updates to strengthen its long-term AI platform strategy.

Microsoft Targets Developers With In-House AI Models

Microsoft unveiled seven new in-house AI models as it looks to give developers more tools and reduce reliance on OpenAI.

The lineup includes a reasoning model designed for efficiency, performance, and low token costs, which could help developers manage the rising expense of building and coding with AI, CNBC reported on Wednesday.

The company also introduced a video creation model, a speech model, and an AI coding model for GitHub.

The coding model targets developers who increasingly use AI to generate software, an area the reporter said Anthropic has dominated.

Microsoft Pushes Agents, AI PCs, And Quantum

Microsoft also introduced Scout, an always-on personal AI agent designed to work in the background.

The company is enabling OpenCHLA to run on Windows, allowing users to direct groups of AI bots to complete tasks and helping Microsoft compete with Apple Inc.'s Apple (AAPL) MacBook ecosystem for developers.

Microsoft is also building its own AI PC push through a partnership with NVIDIA Corp. NVIDIA (NVDA).

In quantum computing, the company moved up its projected timeline for a useful and scalable quantum computer from 2033 to 2029, citing a 1,000x improvement enabled by AI in research and development and its new Majorana 2 quantum chip.

Wedbush Securities analyst Dan Ives said the market is undervaluing Microsoft as the company uses its developer conference to strengthen its AI platform, defend its software ecosystem, and expand its long-term Azure opportunity.

He said the market is underestimating the company's AI-driven growth story and mispricing its stock ahead of a potential monetization phase in the coming months.

Ives Says Microsoft Is Defending Its Developer Turf

Ives told CNBC on Wednesday that Microsoft is going after developers and defending its position against OpenAI as AI tools reshape software creation.

He said the company's latest announcements matter beyond Copilot and Build because they ultimately support Azure, which he sees as central to Microsoft's next phase of AI monetization.

Ives said the market is mispricing Microsoft because he expects the company to enter a monetization phase over the next six to 12 months.

He said he likes what Microsoft is showing at the developer conference.

Ives Sees Quantum As Part Of Microsoft's Broader AI Strategy

Ives said Microsoft's quantum announcements follow a broader cloud playbook and give Azure more exposure to quantum computing.

He said Microsoft must push deeper into emerging technologies as Big Tech races to advance AI, cloud, and quantum computing.

Ives said innovation is accelerating faster than many expected.

He framed Microsoft's quantum push as part of the broader Fourth Industrial Revolution, tied to Azure and the company's long-term technology platform strategy.

MSFT Price Action: Microsoft shares were up 0.16% at $428.01 at the time of publication on Thursday.