New Azure Cobalt 200 VMs deliver 50% performance improvement, fully optimized for modern agentic AI workloads

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As organizations increasingly embrace the agentic era for AI, customer demands for compute are reshaping the architecture of cloud infrastructure as we know it. Today at Microsoft Build 2026, we are announcing the early access preview for Azure Cobalt 200 Arm-based Virtual Machines (VMs), designed from the ground up for scale-out, cloud-native, and Linux-based agentic AI workloads, with up to 50% better generational performance over Cobalt 100.

Cobalt 200 is purpose-built from silicon to servers to services—integrating Microsoft’s latest innovations in security, networking, storage, and offload to outperform traditional Arm-based compute. That hardware-software co-optimization lets us push the boundaries of scale, security, and cost for AI inferencing, data pipelines, and the web and API tiers that power modern services. Agents are unique from traditional workloads: they reason, make sequential decisions, and run continuously at scale—demanding a fundamentally different computational profile. Cobalt 200 is built for exactly this environment, delivering...

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