Microsoft Build 2026: Every Major Announcement from Nadella's Agent-First Keynote

To house these agents, Microsoft began turning Windows itself into a native runtime. The Windows Agent Runtime, previewed at Build, provides native agent APIs directly in the OS shell. Complementing this is a new Windows Agent Store, offering an 85% revenue share for developers, with Adobe and Zoom already signed on as early partners . The company also introduced Copilot Agent Mode, a new operating tier that lets the Copilot plan and execute multi-step tasks across the Microsoft 365 ecosystem and the web, with IT-defined guardrails .

Copilot Studio Graduates Computer-Using Agents to GA

Just before the conference doors opened, on May 26, 2026, Microsoft's Copilot Studio update moved three critical capabilities out of preview and into general availability: computer-using agents (CUAs), agent-to-agent communication, and real-time voice .

Computer-using agents are a particularly important step. Unlike traditional API-based automation, CUAs can navigate websites and desktop applications visually, using the UI just as a human would. They support models like OpenAI's CUA and Anthropic's Claude Sonnet 4.5, and include enterprise-grade governance with key vault-stored credentials, application access control allowlists, and session replay for audit logging . A revamped orchestration layer underneath these agents reportedly reduces token consumption by roughly 50%, making them more practical for scaled enterprise workloads .

The New AI Development Stack: Foundry and GitHub Copilot

Microsoft consolidated its sprawling AI toolchain under the new Azure AI Foundry brand. Build 2026 showcased it not as a roadmap item, but as a unified platform with its Agent Service already in GA . Key components now shipping include Foundry IQ (a connector layer to external data), Fabric IQ for Microsoft's data platform, and Azure HorizonDB, an AI-optimized database with native vector indexing . The platform has also opened up its model catalog, with Anthropic's Claude now available as a first-party option alongside models from OpenAI, DeepSeek, and others .

For developers working offline or on-device, Foundry Local reached GA, enabling full AI inference and agent execution on Windows, macOS (Apple Silicon), and Linux x64 .

On the coding front, GitHub Copilot has matured significantly since its autonomous agent debut at Build 2025. A year later, Microsoft brought real-world deployment data showing the agent independently fixing bugs, writing tests, and opening pull requests. Copilot CLI also reached GA in March 2026, bringing agentic capabilities directly to terminal workflows . Build sessions previewed the next frontier: autonomous performance analysis, debugging pipelines, and deeper multi-agent coordination inside VS Code .

Nvidia Arm PCs: A New Windows Era Begins

One of the most concrete and visually tangible announcements of the week was the official launch of the first Windows PCs powered by Nvidia chips as the main processors. The Arm-based systems were jointly unveiled by Nvidia and Microsoft across both the Build conference in San Francisco and the Computex trade show in Taipei .

The first systems come from two manufacturers: Microsoft's own Surface brand and Dell, signaling a high-priority, premium-market push for the new silicon . This move represents Nvidia's long-rumored entry into the PC processor market, with these first laptops reportedly built around the company's N1X-class Arm chip . Microsoft reportedly prepped the Windows 11 26H1 release specifically for this new class of silicon, which was previously only tested for chips like the Snapdragon X Elite 2 and Nvidia's N1X .

The launch revives the Windows-on-Arm vision with a partner far stronger than in the Surface RT era. With Windows 11's mature Prism emulator for x86 apps and years of developer pressure to build Arm64-native tooling, the market has largely accepted Arm-based Windows PC as viable premium machines .

The $9.69 Billion Pentagon Deal

While Build was underway, a historic enterprise deal was closing. On May 27, the Pentagon announced a five-year, $9.69 billion blanket purchase agreement called the Core Enterprise Technology Agreement (CETA) to consolidate Microsoft enterprise software licenses across all military services, the intelligence community, and the U.S. Coast Guard .

The prime contract was awarded to Dell Federal Systems, which acts as a single procurement point, with Microsoft as the primary software vendor . Pentagon CIO Kirsten Davies described years of fragmented, "go-it-alone procurement" that had led to duplicative spending and license sprawl. The consolidation into a single vehicle is expected to save the Department of Defense approximately $422 million annually . The deal covers a foundational layer of Microsoft 365 cloud subscriptions and on-premises licensing, creating a common digital foundation across the U.S. armed forces that will run on the same agentic platform being rolled out at Build .

On-Device AI and the WSL 3 Preview

Build also provided a glimpse into the next generation of developer tooling. Windows Subsystem for Linux 3 (WSL 3) was previewed, offering near-native GPU and NPU access for Linux-based AI workloads running on Windows. This is a direct play for developers who split their time between Windows and Linux AI toolchains .

The conference hosted hundreds of sessions across seven tracks—Agents and Apps, Azure AI Platform, GitHub, Microsoft Fabric, Responsible AI, Windows, and Innovation—all converging on the reality that agents are the new application primitive .