Microsoft Begins Merging Consumer and Enterprise Copilot Apps Ahead of Super App Launch

Microsoft has started merging its consumer and enterprise Copilot apps, the company confirmed, beginning a rollout this week to a small subset of users as it works toward a unified "super app."

The changes affect navigation, feature availability, and sign-in flow. Microsoft is introducing a color-coded visual cue so users can distinguish whether they're signed into a business or personal account. The Microsoft 365 app will be rebranded as the "Microsoft Copilot" app.

Most of the disruption falls on consumer Copilot users. Starting Aug. 18, Microsoft is removing several consumer-facing features, including Copilot Podcasts, Group Chat, and Deep Research, as part of the consolidation.

The super app push

This rollout is an early step in one of Microsoft's most closely watched internal projects. Fortune first reported in May that Microsoft is racing to ship a super app within months that combines a chat function, the GitHub Copilot coding assistant, the Copilot Cowork tool, and a new agentic workflow feature internally named Autopilot.

The project is led by Jacob Andreou, 33, whom Fortune reported in June has been tasked by CEO Satya Nadella with helping fix Microsoft's AI strategy after the company fell behind rivals Anthropic and OpenAI in consumer mindshare.

According to Microsoft, its enterprise 365 Copilot service has surpassed 30 million paid seats, a figure Nadella disclosed in the company's latest earnings report. That business sits alongside Azure, which crossed $100 billion in annual revenue last quarter, a growth engine the company attributes largely to AI demand — much of it driven by OpenAI's compute usage on the platform.

Microsoft has been working to diversify beyond its dependence on OpenAI while redirecting computing resources toward Copilot. This week, Microsoft's AI lab unveiled its first reasoning model, MAI-Thinking-1, which the company claims matches leading models on some software engineering benchmarks. Microsoft also said its latest coding model runs 25% more efficiently than its predecessor, though it did not disclose specific benchmark scores, context window, or pricing for either model.

Nadella has also publicly backed open-weight models as part of Microsoft's broader AI strategy. "You can't depend on any one model," he said on the company's July earnings call. "You will maybe need multiple models to even remediate some challenges that get caused by one model." Critics argue open-weight models carry greater security risk, while supporters, including Nadella, say they're necessary to compete with Chinese open-source releases.

What this means

Microsoft is betting that consolidating its fragmented Copilot lineup into a single app is a prerequisite for competing with OpenAI's ChatGPT and Anthropic's Claude at the consumer level, where Microsoft has struggled to build a comparable audience despite its enterprise scale. Cutting features like Deep Research and Group Chat during the merge suggests the company is simplifying its product surface before adding the more ambitious Autopilot agentic layer, rather than trying to preserve every feature through the transition. The timing — alongside the MAI-Thinking-1 reasoning model release and Nadella's multi-model rhetoric — signals Microsoft is trying to reduce reliance on OpenAI's models while still running OpenAI workloads at massive scale on Azure. Whether a merged app translates into consumer traction remains unproven; Microsoft has not disclosed user numbers for consumer Copilot, only the 30-million-seat figure for its enterprise product.