New Delhi, Oct. 22 -- Tech giant Microsoft is focusing on building a broader artificial intelligence (AI) ecosystem and reducing the cost of AI-powered services, Chairman and CEO Satya Nadella said in his annual letter, highlighting the company's strategy as AI adoption accelerates globally.

Nadella noted that "Super Intelligence" is changing every organisation's inputs and outputs, while inference is making marginal cost a vital factor in software economics.

"As a result, customers will increasingly measure the cost of tokens against the outcomes they produce," Nadella said, referring to this as the "cost-to-outcome" frontier and adding that Microsoft is focused on optimising it.

According to Nadella, Microsoft's focus in the emerging...