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Mary Jo Foley: What's a consumer-focused outsider doing at the helm of Microsoft's AI push?
It's not surprising that Microsoft is looking to turn its Copilot platform into a "Super App," given that its rivals are doing the same. But Microsoft is going about the task in a way that doesn't follow its usual playbook, by putting a big bet on a consumer-savvy hire from the outside with some
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The 33-year-old ex-Snap exec Nadella is trusting to fix Copilot now oversees 11,000 people
Nadella promoted Jacob Andreou to EVP of Copilot after one year. He oversees 11,000 people and is building a super app while only 4.5% of 365 users pay. Jacob Andreou, the 33-year-old executive Satya Nadella promoted to run Copilot in March after just one year at Microsoft, now oversees more than
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The 33-year-old executive Satya Nadella is trusting to save Microsoft's AI strategy | Fortune
Early this year, Jacob Andreou had a crucial goal. The Microsoft executive set out to order a McDonald's cheeseburger to his apartment across from the company's Silicon Valley campus using a homegrown AI tool. Andreou and his team had worked nonstop to get the tool, named Copilot Tasks, up and
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Satya Nadella promoted Jacob Andreou to lead Copilot after just one year at Microsoft, tasking him with merging consumer and enterprise AI experiences. The former Snap executive now oversees 11,000 employees and is building a Super App to compete with OpenAI and Anthropic, despite only 4.5% of Microsoft 365 users paying for Copilot.
Microsoft is taking an unconventional approach to salvage its position in the AI race by placing Jacob Andreou, a 33-year-old former Snap executive, at the helm of its Copilot platform. After spending just one year at Microsoft, Andreou was promoted to Executive Vice President of Copilot in March 2026, now overseeing more than 11,000 employees
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. The move signals CEO Satya Nadella's urgency to transform Microsoft's AI strategy in what Andreou describes as "one of the most intensely competitive environments tech has seen in the last 20 years"3
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Source: Fortune
The appointment represents a cultural shift for the 51-year-old tech giant, which historically favored insiders who climbed the corporate ladder over external hires. Andreou's background at Snapchat, where he scaled the platform from 80 million to 360 million daily active users, and later as a venture partner at Greylock Partners backing consumer AI startups, makes him an unusual choice for leading Microsoft's AI push in an enterprise-dominated company
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.Andreou's primary mission centers on building a Copilot Super App that unifies chat, coding, and agentic workflows into a single environment. Nadella announced at Microsoft Build in early June that "come summer, we will be bringing coding to all knowledge work within one Copilot Super App," combining Chat, Cowork, and Code features
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. The Super App will allow users to toggle between personal and enterprise accounts in one interface, addressing a fragmented product landscape where Microsoft currently offers more than two dozen different Copilot-branded commercial offerings1
.This strategy directly competes with OpenAI's efforts to transform ChatGPT into a personal assistant combining ChatGPT and Codex, and Anthropic's expansion of Claude into a unified productivity, development, and automation environment
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. Microsoft is also bringing former Snap and Discord vice president Peter Sellis onboard to lead Copilot Design, Growth and Engineering, reporting to Andreou1
.Andreou has eliminated redundant product versions and merged the consumer and enterprise Copilot teams, despite significant technical challenges
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. The two versions of Copilot don't currently work the same way or use the same data sources or architecture, making unification complex1
. Microsoft's previous attempts at consumer-enterprise convergence, such as the free consumer-focused Teams product, saw limited uptake compared to business-focused offerings1
.The Los Angeles-based executive has championed Copilot Tasks, an AI tool development project that enables Copilot to handle actionable items autonomously. In a demonstration of the technology's capabilities, Andreou and his team built Tasks in approximately two months, successfully using it to order a McDonald's cheeseburger to his Silicon Valley apartment
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. The speed and hands-on technical approach impressed Nadella, with employees noting that Andreou personally codes alongside developers2
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The stakes are high for Microsoft AI. Only about 4.5% of 450 million Microsoft 365 Copilot customers currently pay for Copilot features, and the free consumer version trails significantly behind ChatGPT
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. Microsoft's stock has declined double-digits over the past year as investors question AI spending and the company's reliance on OpenAI2
. Jefferies analyst Brent Thill noted the general perception of Copilot is that "it stinks"2
.Despite challenges, Microsoft has seen momentum. England's National Health Service recently rolled out Microsoft 365 Copilot to more than 500,000 staff, demonstrating that massive, regulated enterprise customers trust Microsoft to securely deliver AI
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. Andreou has introduced consumption-based pricing alongside traditional seat licenses, with Copilot Cowork billing by usage based on factors like model use and runtime2
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.Andreou's appointment has accelerated cultural changes within Microsoft AI, with some teams now working 12-hour days as they feel daily pressure to keep up with Anthropic and other labs
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. The executive favors 10x developers and has introduced startup-style engineering practices, including hackathons near Seattle, San Francisco, and other hubs3
. Current and former employees told Fortune that critics worry shipping speed risks compliance problems and that Andreou still has to prove himself in enterprise software2
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Source: GeekWire
Beyond the Super App, AI models remain a key priority. Microsoft is expanding model choice in Copilot Cowork beyond Anthropic to include OpenAI and soon Microsoft's own Cowork 1 model, potentially based on the company's hosted version of open-source DeepSeek
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. Seven Microsoft-developed AI models debuted at Build this year, positioning the company as a champion of lower-cost, efficient models for token-conscious users1
.Andreou's promotion freed Mustafa Suleyman, the DeepMind co-founder, to focus on proprietary AI models rather than day-to-day product management
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. Suleyman told roughly 80 developers in March that the future of software development means fewer people working harder by leveraging AI agents and Autopilot capabilities2
. Nadella has dismantled Microsoft's entire senior leadership structure this year in favor of startup-style engineering groups, with Andreou representing a changing of the guard alongside other young executives like Xbox's new chief Asha Sharma3
.Summarized by
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