Microsoft merges consumer and enterprise Copilot apps into one 'super app'

Microsoft is consolidating its sprawling Copilot lineup, merging the consumer and enterprise Copilot apps into a single 'super app.' The effort is led by Jacob Andreou, a 33-year-old executive, and represents an attempt to simplify a product surface that had fragmented across audiences. As part of the merge, Microsoft is retiring three features that failed to gain traction — including Group Chats, whose data will be wiped on August 18, 2026 — a rare public admission that some Copilot bets did not land.

The strategic backdrop is money: Microsoft disclosed that Azure crossed $100 billion in annual revenue, driven largely by AI demand. That milestone underscores why Microsoft is willing to prune consumer features that don't perform — the enterprise cloud is where the returns concentrate, echoing the same enterprise-over-consumer dynamic OpenAI reported this week.

Microsoft's AI unit was also active elsewhere: CEO Mustafa Suleyman announced MAI-Thinking-1, Microsoft's first reasoning model 'built from scratch,' now available in Microsoft Foundry — a post Satya Nadella amplified. On Azure specifically, the week brought Container Apps Sandboxes (Preview) for secure AI agent execution, extended free Databricks Genie usage through January 2027, and MAI-Code-1.1-Flash with 25% better token efficiency and 75% cost reduction.

The super-app consolidation carries risk: unifying consumer and enterprise experiences can dilute both, and wiping Group Chats data by a hard deadline will frustrate the users who did adopt it. Andreou's youth and Snap pedigree signal Microsoft wants a consumer-product sensibility, but enterprise IT admins may resist a merged app that blurs governance boundaries. Watch how the unified app handles the very different security and compliance needs of the two audiences.