Microsoft Build 2025: Building the Open Agentic Web

Microsoft's annual developer conference, Build 2025, showcased the company's ambitious vision for an open agentic web powered by AI. This post summarizes key announcements and my personal reflections on the event.

Keynote Timeline

For reference, here's a breakdown of the Day 1 keynote segments:

0:00 - Keynote opening
2:50 - Developer tools: Visual Studio, GitHub and open source Copilot extensions
5:33 - Coding agents
10:57 - OpenAI CEO Sam Altman
16:00 - Apps and agents in Microsoft 365 Copilot
22:52 - Copilot agents demo
29:50 - AI platform: Azure AI Foundry
36:55 - Grok in Azure and conversation with Elon Musk
41:05 - AI models and bring your own model to Copilot Studio
51:26 - Azure AI Foundry and GitHub Copilot demo
1:00:00 - Foundry Local and Windows AI Foundry
1:11:02 - Microsoft CTO Kevin Scott on building the open agentic web
1:29:51 - Data and analytics stack
1:35:48 - Infrastructure optimization and conversation with NVIDIA CEO Jensen Huang
1:46:18 - Microsoft Discovery

Day 2 Keynote: The Evolution of AI-Powered Development

The second day keynote focused heavily on practical applications of AI for developers, with several key themes emerging:

Developer Tools and AI Integration

Microsoft demonstrated significant advancements in how AI integrates with developer workflows:

Open Source GitHub Copilot VS Code extension - Making AI assistance more customizable and transparent
GitHub + Foundation Models - New partnerships with both OpenAI Codex and Anthropic
Improved Plan → Execute → Migrate workflow - AI that better understands the full development lifecycle

A particularly interesting announcement was the mainframe modernization initiative, showing Microsoft's commitment to helping enterprises transition legacy systems to modern architectures.

The Agent Factory Vision

One of the most compelling concepts introduced was the "Agent Factory" - Microsoft's framework for creating, deploying, and managing AI agents at scale. This builds upon several related concepts:

Foundry - The infrastructure layer for training and deploying AI models
Software Factory - Automated pipelines for code generation and quality assurance
Application Factory - Similar to ByteDance's approach, but with greater emphasis on agent autonomy

The Agent Factory represents Microsoft's bet that the future of software development will involve orchestrating teams of AI agents rather than exclusively writing code manually.

The Microsoft Approach: Stability vs. Innovation

An interesting observation about Microsoft's approach to technology emerged during the presentations. Much like Toyota in the automotive world, Microsoft positions itself as the reliable, stable choice rather than the flashiest innovator:

Microsoft is like driving a Toyota - not necessarily the most exciting, but reliable with predictable behavior and few surprises.

This contrasts with newer technology platforms that might be compared to electric vehicles:

EVs are fantastic and feature-rich, but often come with surprising issues you wouldn't anticipate.

This philosophy extends to Microsoft's AI strategy - emphasizing responsible deployment and practical applications over more experimental approaches.

Model Context Protocol (MCP) and Windows Integration

A significant technical announcement was the expansion of Model Context Protocol for Windows. MCP represents a standardized way for applications to communicate with AI models, creating a more consistent experience across different tools and platforms.

What impressed me was seeing Nataya (Microsoft executive) personally demonstrating GitHub operations during the keynote - contrasting with some tech and automotive CEOs who appear disconnected from their products' actual functionality. This hands-on approach reflects Microsoft's developer-centric culture.

Looking Forward: Cross-Platform Opportunities

An interesting idea that occurred to me during the presentation: building an MCP service for Android settings and operations. This could standardize how Android applications interact with AI models, similar to what Microsoft is developing for Windows.

Reflections and Analysis

While the presentations were generally strong, there were a few areas for improvement:

The Spotify frontend demonstration wasn't particularly compelling
Noticeable absence of leading software vendors beyond Microsoft's own ecosystem
Good representation from traditional manufacturing (Boeing, etc.), but fewer cutting-edge tech companies

Conclusion: The Emergence of an Open Agentic Web

Microsoft Build 2025 clearly positions the company at the forefront of the AI revolution, specifically championing what they call the "open agentic web." This vision represents a significant evolution beyond current AI implementations, with autonomous agents working together across platforms and services to solve complex problems.

The most compelling aspect of this approach is its pragmatism - Microsoft isn't just theorizing about future possibilities, but demonstrating working tools and frameworks that developers can implement today. By embracing partnerships with competitors like OpenAI and Anthropic, Microsoft is fostering an ecosystem approach rather than a walled garden.

As development workflows increasingly incorporate AI agents, Microsoft's early investments in this space appear to be paying dividends. Their balance of innovation with stability positions them uniquely among tech giants to lead this transition.

What are your thoughts on Microsoft's vision for AI agents and the development tools showcased at Build 2025? Are you already incorporating these technologies into your workflow? Let me know in the comments below.

The Future of Software Development with AI and Open Agentic Web

Satya Nadella, the CEO of Microsoft, emphasized the transformative potential of artificial intelligence (AI) in software development during his keynote address at the Build conference. With a background in computer science and significant leadership roles at Microsoft, Nadella has driven the company's vision towards harnessing AI for empowering developers. His notable achievements include the successful integration of AI tools into Microsoft’s development ecosystem, such as Visual Studio and GitHub Copilot, which collectively boast millions of users. Throughout the keynote, he highlighted the importance of creating a collaborative environment where developers can leverage AI as a coding partner, thereby enhancing productivity and innovation within the industry.

Key Points:

Empowering Developers with AI Tools Nadella articulated the role of AI in democratizing programming, emphasizing that AI tools like GitHub Copilot can empower developers to tackle larger projects and solve complex problems. With over 15 million developers using GitHub Copilot, the integration of AI into coding practices has revolutionized how software is developed, enabling faster iterations and more creative solutions.

The Evolution of Software Engineering Platforms He discussed the evolution of software engineering from traditional methods to an open agentic web, marking a significant platform shift akin to previous technological revolutions. This shift is characterized by an expansion of opportunities for developers across all layers of the software stack, allowing them to build applications that enhance productivity and collaboration on a global scale.

Integration of Advanced Development Tools The keynote highlighted the continuous improvement of development tools such as Visual Studio, which now supports over 50 million users and offers enhanced features like live previews and improved debugging capabilities. These tools are essential for managing complexity in software development, allowing developers to create sophisticated applications efficiently.

Open Source and AI Collaboration Nadella announced the open-sourcing of GitHub Copilot within Visual Studio Code, a significant step towards integrating AI capabilities directly into widely-used development environments. This move is expected to foster innovation and collaboration among developers, as they can now access AI-driven features that streamline coding tasks and enhance coding accuracy.

The Role of Coding Agents in Software Development The introduction of coding agents represents a pivotal advancement in software engineering, allowing developers to assign tasks and manage projects more effectively. These agents can automate processes like code maintenance and bug fixes, significantly reducing the manual workload and enabling developers to focus on more strategic initiatives.

Microsoft 365 Copilot Enhancements Nadella showcased the latest updates to Microsoft 365 Copilot, which integrates chat, search, and AI agents into a cohesive platform that enhances workplace productivity. This platform now allows users to interact with agents that can synthesize data from multiple sources, streamlining workflows and improving decision-making processes across organizations.

Agile Development with AI-Driven Agents The keynote underscored the importance of agile development practices in leveraging AI-driven agents for multi-agent orchestration. By enabling various agents to collaborate and share information, organizations can accelerate project timelines and enhance the overall quality of their software products, reflecting a shift towards more dynamic and responsive development environments.

Customization and Tuning of AI Models Nadella introduced the concept of "Copilot Tuning," which allows organizations to customize AI models to reflect their unique business language and workflows. This capability enables companies to amplify their domain expertise, ensuring that AI-driven solutions are tailored to meet specific industry needs and enhance operational efficiency.

The Future of Collaborative Development The collaboration between Microsoft and OpenAI was highlighted as a significant step toward realizing the full potential of AI in software development. With tools that allow for real-time collaboration between developers and AI agents, the future of programming is set to become more integrated and responsive, ultimately leading to innovative solutions that address real-world challenges.

Impact of AI on Developer Experience Nadella concluded by emphasizing the profound impact of AI on the developer experience, stating that the integration of AI into everyday coding tasks not only enhances productivity but also enriches the creative process. As AI continues to evolve, developers are expected to harness these tools to push the boundaries of what is possible in software creation, paving the way for a new era of technological advancement.