Microsoft Corp (NASDAQ:MSFT)‘s enterprise artificial intelligence strategy received a positive assessment from Jefferies following the company’s annual Build developer conference, with the analysts writing that the competitive focus in AI is increasingly shifting beyond foundation models toward the software infrastructure used to manage, evaluate, and deploy them.

After attending the event in person, the analysts wrote that Microsoft’s model-agnostic approach, integrated enterprise platform, and governance capabilities position it well as businesses seek greater flexibility in deploying AI applications.

The analysts argued that enterprises are placing more emphasis on the ability to switch between different AI models and optimize performance using their own proprietary data and evaluation systems. In that environment, Microsoft could benefit from offering access to both OpenAI and Anthropic models while combining them with its broader software ecosystem.

Jefferies compared the opportunity to Microsoft’s earlier transition from operating systems to cloud computing, writing that the company’s next growth phase could be driven by becoming the orchestration and evaluation layer for enterprise AI.

The analysts also addressed the competitive landscape among AI model providers, noting that while Anthropic currently commands significant attention, OpenAI continues to gain traction through advancements in products such as GPT-5.5 and Codex, supported by substantial capital and engineering resources.

According to the analysts, customer discussions indicated that OpenAI’s availability through Amazon Web Services has narrowed Microsoft’s previous advantage as the exclusive API provider.

However, they wrote that Microsoft’s broader end-to-end platform, integrated identity services, and more mature agent management tools remain key differentiators compared with rival offerings.

The analysts also highlighted Microsoft’s efforts to improve the cost-effectiveness and enterprise applicability of its own AI models. They wrote that customers responded positively to the company’s Frontier Tuning capabilities, which are designed to help organizations adapt AI systems using proprietary data and domain-specific context.

In addition, the analysts wrote that attendees at the conference viewed products such as Azure AI Foundry as evidence that Microsoft is making progress in integrating its AI portfolio into a more unified enterprise platform.

Jefferies also pointed to security and governance as important competitive advantages as AI applications become more autonomous.