Microsoft isn't just competing in AI—they're building a vertically integrated stack from models to platforms to developer tools. Our analysis breaks down their three-layer strategy, from Phi-4 reasoning models to CPU-based BitNet inference and GitHub Copilot integration. We examine the real trade-offs between technical innovation and product constraints. https://post.kapualabs.com/ycy45233 #AI #Microsoft #TechStrategy #EnterpriseAI $MSFT