Microsoft CEO Satya Nadella, after transforming Microsoft into a cloud computing giant, is now striving to make it a dominant force in the AI era. Despite Microsoft's early investment in OpenAI, its Copilot technology has yet to achieve widespread adoption, and proprietary AI models remain niche. Wall Street holds a "lukewarm" attitude towards the company's AI strategy, with its stock price up 7% this year, underperforming other tech giants and the Nasdaq index. Nadella acknowledged the need to adjust business models to adapt to AI-driven consumption-based pricing and noted that GitHub Copilot users have reached 50 million, with sales growing by 60%. Microsoft will host a Windows and Surface event in San Francisco on Wednesday to discuss how local AI will shape the future of PCs.