At the Build 2025 developer conference in Seattle, Microsoft laid out an ambitious roadmap for the future of artificial intelligence, one that imagines a world where AI agents from different companies can not only work together but also retain meaningful memories of their interactions with users.

The initiative is a clear signal of Microsoft’s determination to dominate the next phase of the AI revolution — one defined by interoperable, memory-rich digital assistants.

Speaking to reporters and analysts at the company’s Redmond headquarters ahead of the event, Microsoft Chief Technology Officer Kevin Scott said the tech giant is championing open standards that would allow AI agents from different developers to collaborate across platforms. He pointed to the Model Context Protocol (MCP), an open-source standard introduced by Anthropic and backed by Google, as a key part of this strategy.

“Your imagination gets to drive what the agentic web becomes,” Scott said, “not just a handful of companies that happen to see some of these problems first.”

From the Internet to the Agentic Web

Scott drew parallels between today’s AI evolution and the early days of the internet. Just as hypertext protocols in the 1990s unlocked the World Wide Web, Microsoft sees MCP as the infrastructure for what it calls the “agentic web” — a new digital ecosystem where intelligent agents interact, delegate tasks, and co-exist in real time across corporate boundaries.

In this new framework, AI agents would be able to coordinate on tasks like resolving software bugs or managing workflow without being siloed by company firewalls or closed APIs. Microsoft believes this open architecture will democratize AI development and unleash a wave of innovation similar to what the internet enabled three decades ago.

Giving AI a Better Memory

Beyond interoperability, Microsoft is also aiming to solve one of AI’s most persistent limitations: memory. Most of today’s AI agents operate in a transactional, stateless manner — each request or interaction is treated in isolation, often without recollection of previous context. Scott acknowledged this flaw, saying, “Most of what we’re building feels very transactional.”

To address this, Microsoft is introducing a method called structured retrieval augmentation. Instead of attempting to store and recall entire conversations, a process that consumes vast amounts of computing power, this technique allows AI agents to extract and preserve short, meaningful snippets from each interaction. The idea is to create a compact, retrievable roadmap of what was discussed.

“This is a core part of how you train a biological brain,” Scott said. “You don’t brute force everything in your head every time you need to solve a particular problem.”

The approach promises to make AI agents more personalized and context-aware, without the prohibitively high cost associated with current large-context models.

Tools for the AI Workforce

The company is also expected to debut new developer tools to manage and deploy AI agents as part of its enterprise offerings. According to an internal memo reported by Business Insider, Microsoft will roll out “Tenant Copilot” — a system designed to oversee agent activities on behalf of organizations — and “Agent Factory,” a development environment that lets companies build and train their own custom AI agents.

These efforts are part of Microsoft’s broader strategy to position AI agents as “digital teammates” — assistants that go beyond simple chatbot functions to perform sophisticated, autonomous tasks alongside human workers.

By aligning with MCP and pursuing cross-platform standards, Microsoft is signaling that it wants AI to be open, modular, and deeply integrated into everyday workflows, not a set of isolated tools owned by a few tech giants.

The Build 2025 conference, which began on May 19, features keynotes from CEO Satya Nadella and other executives, focusing on Microsoft’s expanding suite of AI technologies. The event is available online, with the company expected to reveal more details about Windows Copilot, AI-integrated development environments, and new partnerships in the AI ecosystem.

However, Microsoft’s big bet rests on whether the industry will embrace its call for collaboration. If successful, the agentic web could reshape how we use and interact with artificial intelligence in the future.

U.S. Treasury yields surged on Monday after Moody’s Investors Service downgraded the country’s credit rating for the first time in decades, sending tremors through the bond market and reigniting debate about America’s worsening fiscal trajectory.

The move came just as House Republicans advanced a Trump-backed tax and spending bill that could add trillions more to the national deficit.

The yield on the 30-year Treasury note jumped 13 basis points to 5.03%, breaking through a psychological threshold that has rattled investors in recent weeks. The 10-year yield climbed 11 basis points to 4.552%, while the 2-year yield rose by 4 basis points to 4.021%. Yields move inversely to prices, meaning the spike reflected a sharp sell-off in U.S. government bonds.

The reaction came swiftly after Moody’s downgraded the U.S. sovereign rating from Aaa to Aa1 on Friday — the first time it has lowered the country’s rating since it began assigning one in 1949. It cited the government’s chronic inability to rein in its budget deficits and the mounting costs of servicing its debt in a high-interest rate environment.

“This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement.

The agency said the downgrade also reflects growing doubts over whether any meaningful fiscal reform will emerge from Washington in the foreseeable future.

Moody’s had been the last of the three major ratings firms to keep the U.S. at its top rating, after S&P stripped the country of its AAA status in 2011 and Fitch followed suit earlier this year. Now, all three have relegated the United States to second-tier credit standing — a symbolic blow to America’s long-standing position as the world’s most trusted borrower.

Deutsche Bank analysts called the downgrade “a major symbolic move,” noting that Moody’s had held the line for over seven decades.

But symbolism aside, the timing of the downgrade has concrete implications. It came just as House Republicans pushed through the Trump-endorsed tax and spending package in the House Budget Committee. The bill, which aims to extend tax cuts from 2017 and introduce new tariff policies, is estimated to deepen the deficit by trillions over the next decade.

Moody’s took direct aim at that plan in its downgrade report, warning that “successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs.” The agency expressed little faith that current legislative proposals, including those advanced by House Republicans, would meaningfully reduce spending or stabilize debt.

Bank of America economist Aditya Bhave echoed those concerns, writing in a note, “With tax cuts and tariffs hanging in the balance, Moody’s appears to be sending a message that it thinks these policy changes will, on net, put the US on an even worse fiscal trajectory. That is, tariff revenues won’t fully offset the cost of the proposed tax bill. We agree.”

The downgrade and the spike in yields have also shaken confidence in U.S. Treasurys as a safe haven for global investors. For decades, U.S. government debt has been considered the gold standard in global finance — a refuge in times of uncertainty. But with interest payments ballooning and political gridlock worsening, investors are beginning to ask whether that assumption still holds.

Even as debt issuance climbs, foreign demand is showing signs of strain. The Federal Reserve, which had long played a stabilizing role by purchasing Treasurys in the secondary market, has pulled back amid efforts to tighten monetary policy and curb inflation.

Eyes are now on the Fed. Central bank officials — including Atlanta Fed President Raphael Bostic, New York Fed President John Williams, and Dallas Fed President Lorie Logan — are expected to speak on Monday. Markets are watching closely for any shift in tone or hints about how the central bank views the risks stemming from fiscal policy and bond market volatility.

The downgrade also throws fresh scrutiny on the political calculus behind the Republican bill. Trump allies argue that making the 2017 tax cuts permanent is essential to sustaining economic growth and reindustrializing America through tariffs on foreign competitors. But critics say the plan is fiscally reckless, ignoring the weight of soaring debt and the implications of rising borrowing costs.

The national debt now exceeds $34 trillion, and annual interest payments on that debt are approaching $1 trillion, surpassing what the country spends on defense or Medicare. With no bipartisan agreement in sight, analysts warn that America’s fiscal credibility may face even greater tests in the months ahead.

As Nigeria’s economy continues to lean heavily on its informal sector for resilience and recovery, the Development Bank of Nigeria (DBN) is unveiling an ambitious plan to inject renewed life into the country’s micro, small, and medium enterprises (MSMEs), the oft-hailed engine of job creation and grassroots economic development.

The bank is setting its sights on growing its outstanding loan portfolio to over N1.8 trillion within the next five years. It also plans to mobilize N3 trillion in fresh capital, a mix of debt and equity, to deepen access to finance for MSMEs, many of which remain unbanked or underbanked due to structural bottlenecks in Nigeria’s financial system.

Speaking in Lagos, DBN’s Managing Director, Tony Okpanachi, described the new five-year strategic plan as a scale-up of what the institution has achieved since its inception, with a more aggressive posture on financial inclusion, gender equity, and sustainability.

“We want to scale up what we’ve done in the first five years. There’s still a lot to be done in Nigeria, and we are very aspirational in our approach,” Okpanachi said.

Women, Youth, and Disadvantaged Groups at the Centre

While DBN operates as a wholesale development finance institution, channeling funds through 79 participating financial institutions rather than dealing directly with individual businesses, its new strategy places inclusive growth at the core of its operations. The bank aims to allocate 20% of its loan portfolio to women-led businesses, while 40% will go to enterprises owned by economically disadvantaged Nigerians.

This is a notable pivot in a country where women-led businesses are often excluded from formal credit channels despite making up a significant portion of the informal economy. Similarly, many enterprises in Nigeria’s northern and rural regions have historically struggled to access capital due to insecurity, poor infrastructure, and financial illiteracy.

“We’re targeting sectors like manufacturing and agriculture—areas that are labour-intensive and hold the potential to absorb large segments of the workforce,” Okpanachi added.

A Focus on Green Financing and Regional Inclusion

In line with global climate goals and Nigeria’s own Energy Transition Plan, DBN is also tilting its strategy towards green financing. The bank intends to back businesses with environmentally sustainable operations, particularly those in underdeveloped states.

This is not a casual nod to climate targets. Green finance is rapidly emerging as a critical component of sustainable development financing, and Nigerian institutions are under pressure to align their portfolios with climate-resilient investment standards. DBN appears keen to ride this wave.

The Managing Director disclosed that the bank is aiming to create two million jobs, both directly and indirectly, over the next five years—nearly double the 1.2 million jobs it claims to have enabled between 2017 and 2022.

One of the bank’s distinct features is that it does not lend directly to MSMEs. Instead, it works through commercial banks, microfinance banks, and other financial institutions that meet its rigorous credit and impact criteria. This model allows it to multiply its reach while strengthening the broader financial ecosystem.

In a country with more than 40 million MSMEs, according to SMEDAN, this model of wholesale lending has helped bridge the risk perception gap that keeps many banks from lending to small businesses.

“Strategically, we’re working on three fronts—expanding our funding sources, deepening current partnerships, and leveraging existing resources to attract new ones,” Okpanachi said.

To meet its N3 trillion fundraising target, DBN is currently in talks with international development partners and is exploring the local capital markets, including plans for a domestic bond issuance, subject to stable macroeconomic conditions. This step, if realized, would signal a stronger shift toward self-sufficiency and long-term viability.

Despite Nigeria’s current fiscal headwinds, marked by high inflation, volatile exchange rates, and record debt servicing obligations, DBN’s capital-raising ambitions reflect a growing confidence among development finance institutions to navigate the turbulence through blended finance models and public-private partnerships.

A Record of Impact—But Challenges Remain

DBN recently disclosed that it had disbursed over N1 trillion in loans to MSMEs through participating institutions. It noted that 74% of its beneficiaries were women, and 25% were youths—a remarkable demographic tilt that is rarely achieved in mainstream commercial lending.

Also striking is its outreach to conflict-affected and economically excluded states such as Borno, Yobe, Katsina, Zamfara, and Adamawa, where small businesses face not just financial exclusion, but threats from insurgency and insecurity.

In terms of capacity building, the bank said it had trained more than 9,500 MSMEs across Nigeria—an often-overlooked component of development finance, as many small business owners in the country lack the financial literacy needed to scale or formalise operations.

However, DBN’s model has been criticized by some stakeholders, who have noted that because DBN does not lend directly, the intended impact may be diluted if partner banks maintain high interest rates or impose unfavorable conditions. Others have called for the bank to work more closely with informal cooperative groups and fintechs to deepen its reach.