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Microsoft Azure Blog

Frontier models and production agents: Advancing Microsoft Foundry for the agentic era | Microsoft Azure Blog Built to bounce back: How Azure resiliency evolved | Microsoft Azure Blog External key management for Azure Managed HSM Meet Brain: The AI system behind Azure reliability | Microsoft Azure Blog Proving application resilience on Azure with Chaos Studio | Microsoft Azure Blog How to design, build, and optimize cloud infrastructure for long-term efficiency Claude in Microsoft Foundry is now generally available | Microsoft Azure Blog The 2026 Agent Confidence Index: Where 300 builders see real momentum | The Microsoft Cloud Blog Accelerate modern Linux workloads with Azure Files | Microsoft Azure Blog Optimizing PostgreSQL on Azure directly in Visual Studio Code From insight to action: The next phase of agentic cloud operations | Microsoft Azure Blog Modernize your data with Azure Storage: Plan and migrate with confidence | Microsoft Azure Blog 3 things leaders need to know from Microsoft Build 2026 | Microsoft Azure Blog Claude Fable 5 available today in Microsoft Foundry: Powering the next era of autonomous agents AI alone won’t change your business. The system running it will. Announcing Microsoft Discovery general availability and Microsoft Discovery app preview A Developer’s Guide to Managing Models, Cost and Quality in Microsoft Foundry Foundry IQ: Build smarter agents faster with unified knowledge and serverless retrieval Microsoft Build 2026: Building agentic apps with Microsoft Fabric and Microsoft Databases New Azure Cobalt 200 VMs deliver 50% performance improvement, fully optimized for modern agentic AI workloads Claude Opus 4.8 is now available in Microsoft Foundry Powering multi-cluster workloads with seamless cross‑cluster networking for Azure Kubernetes Fleet Manager Azure NetApp Files for EDA workloads: From revolution to breakthrough at scale Azure IaaS: Deploy high-performance workloads with a system-level approach Azure Files Entra-Only identities: Advancing cloud-native identity and security From commit to cloud: Powering what’s next for PostgreSQL Advancing enterprise AI: New SAP on Azure announcements from SAP Sapphire 2026 Red Hat Summit 2026: Platform modernization and AI on Microsoft Azure Red Hat OpenShift Build AI apps with Azure Cosmos DB: Key trends from Cosmos Conf 2026 Scaling cloud and AI: Microsoft Azure’s commitment to Europe’s digital future Azure IaaS: Defense in depth built on secure-by-design principles Enforcing trust and transparency: Open-sourcing the Azure Integrated HSM Microsoft named a Leader in the IDC MarketScape: Worldwide API Management 2026 Vendor Assessment OpenAI’s GPT-5.5 in Microsoft Foundry: Frontier intelligence on an enterprise ready platform Microsoft Discovery: Advancing agentic R&D at scale Introducing Azure Accelerate for Databases: Modernize your data for AI with experts and investments Cloud Cost Optimization: Principles that still matter Optimize object storage costs automatically with smart tier—now generally available Microsoft named a Leader in The Forrester Wave™ for Sovereign Cloud Platforms How Drasi used GitHub Copilot to find documentation bugs Cloud Cost Optimization: How to maximize ROI from AI, manage costs, and unlock real business value Azure IaaS: Keep critical applications running with built-in resiliency at scale Building sovereign AI at the edge: Microsoft and Armada collaborate to deliver Azure Local on Galleon modular datacenters Navigating digital sovereignty at the frontier of transformation Microsoft named a Leader in 2026 Gartner® Magic Quadrant™ for Integration Platform as a Service AI for nuclear energy: Powering an intelligent, resilient future | The Microsoft Cloud Blog What’s new with Microsoft in open-source and Kubernetes at KubeCon + CloudNativeCon Europe 2026 Advancing agentic AI with Microsoft databases across a unified data estate FabCon and SQLCon 2026: Unifying databases and Fabric on a single data platform From legacy to leadership: How PostgreSQL on Azure powers enterprise agility and innovation
Microsoft at NVIDIA GTC: New solutions for Microsoft Foundry, Azure AI infrastructure and Physical AI
2026-03-16 · via Microsoft Azure Blog

Microsoft combines accelerated computing with cloud scale engineering to bring advanced AI capabilities to our customers. For years, we’ve worked with NVIDIA to integrate hardware, software and infrastructure to power many of today’s most important AI breakthroughs.

What’s new at NVIDIA GTC

  • Expanded Microsoft Foundry capabilities to build, deploy and operate production-ready AI agents on NVIDIA accelerators and open NVIDIA Nemotron models
  • New Azure AI infrastructure optimized for inference-heavy, reasoning-based workloads, including the first hyperscale cloud to power on next-generation NVIDIA Vera Rubin NVL72 systems
  • Deeper integration across Microsoft Foundry, Microsoft Fabric and NVIDIA Omniverse libraries and open frameworks to support Physical AI systems from simulation to real‑world operations

From Frontier models to production-ready agents

At the foundation of this system is Microsoft Foundry: serving as the operating system for building, deploying and operating AI at enterprise scale. Foundry builds on Azure to bring together models, tools, data and observability into a single system designed for production agents. Today we’re expanding those capabilities across Foundry Agent Service and NVIDIA Nemotron models.

The next-generation Foundry Agent Service and Observability in Foundry Control Plane are now generally available, enabling organizations to build and operate AI agents at production scale. Foundry Agent Service allows teams to quickly develop agents that reason, plan and act across tools, data and workflows. Once created, Foundry Control Plane provides the developer end-to-end visibility into agent behavior, unlocking both developer productivity as well as enterprise trust. Companies such as Corvus Energy are already using Foundry to replace manual inspection workflows with agent-driven operational intelligence across their global fleet.

We are further simplifying the path from prototype to production with the availability of Voice Live API integration with Foundry Agent Service, in public preview, which enables developers to build voice-first, multimodal, real-time agentic experiences. This pairs with the general availability of a refreshed Microsoft Foundry portal and expanded integrations for Palo Alto Networks’ Prisma AIRS and Zenity, delivering deeper builder experiences and runtime security across the entire agent lifecycle.

NVIDIA Nemotron models are also now available through Microsoft Foundry, joining the widest selection of models on any cloud, including the latest reasoning, frontier and open models. This bolsters our recent partnership announcement bringing Fireworks AI to Microsoft Foundry, enabling customers to fine-tune open-weight models like NVIDIA Nemotron into low-latency assets that can be distributed to the edge.

Scaling AI infrastructure for the world’s most demanding workloads

Inference AI workloads are reshaping cost, performance and system design requirements. To operationalize agentic AI at scale, customers need purpose-built infrastructure for inference‑heavy, reasoning‑based workloads that can be deployed and operated consistently across global and regulated environments.

Microsoft’s AI infrastructure approach is engineered to seamlessly bring next-generation NVIDIA systems into Azure datacenters that are designed for power, cooling networking and rapid generational upgrades. This allows our customers to move with speed and agility and stay at the leading edge from generation to generation.

In less than a year, we’ve deployed hundreds of thousands of liquid-cooled Grace Blackwell GPUs across our global datacenter footprint, and now we are excited to be the first hyperscale cloud to power on NVIDIA’s newest Vera Rubin NVL72 in our labs. Over the next few months, Vera Rubin NVL72 will be rolled out into our modern, liquid-cooled Azure datacenters.

Microsoft’s infrastructure innovation with NVIDIA also extends to sovereign and regulated environments to give customers control of both where AI runs and how it evolves over time. Recently, we announced Foundry Local support for modern infrastructure and large AI models, and today we now have initial support for NVIDIA Vera Rubin platform on Azure Local, extending accelerated AI capabilities to customer-controlled environments. This approach allows organizations to plan for next-generation AI workloads, including reasoning-based and agentic systems, while maintaining Azure-consistent operations, governance and security through our unified software layer with Azure Arc and Foundry Local.

YouTube Video

Bringing AI into the physical world

As AI moves beyond digital experiences, Microsoft and NVIDIA are collaborating to support the next wave of Physical AI. At GTC, this work centers on NVIDIA Physical AI Data Factory Blueprint, with Microsoft Foundry as the platform for hosting and operating Physical AI systems on Azure at cloud scale.

By integrating this blueprint with Azure services as part of a Physical AI Toolchain, Microsoft enables developers to build, train and operate physical AI and robotics workflows that connect physical assets, simulation and cloud training environments into repeatable, enterprise-grade pipelines. To support, we are introducing a public Azure Physical AI Toolchain GitHub repository integrated with the Nvidia Physical AI Data Factory and with core Azure services.

To further the impact of AI in real‑world, physical environments, today Microsoft and NVIDIA are deepening the integration between Microsoft Fabric and NVIDIA Omniverse libraries, connecting live operational data with physically accurate digital twins and simulation. This allows organizations to see what’s happening across their physical systems, understand it in real time and use AI to decide what to do next. In practice, customers in manufacturing and operations and beyond are using this approach to move beyond dashboards and alerts to coordinated, AI‑driven action across machines, facilities and workflows.

From innovation to impact

Microsoft is delivering reliable, production‑scale AI by bringing together its global AI infrastructure, platforms and real‑world systems with the latest innovation from NVIDIA. For customers, this means the ability to operate intelligence continuously, running inference-heavy, reasoning-based and physical AI workloads with the performance, security and governance required for real businesses and regulated industries.

Whether powering always-on agents, scaling next-generation AI infrastructure or deploying intelligent systems in factories, energy facilities and sovereign environments, Microsoft and Nvidia are helping customers move faster from insight to action.

Yina Arenas leads product strategy and execution for Microsoft Foundry, overseeing the endtoend AI product portfolio, infrastructure, developer experiences and foundation model integration across OpenAI, Anthropic, Mistral, DeepSeek and others. She delivers an enterprise ready, production grade AI platform trusted by global customers for secure, reliable and scalable AI.

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