Microsoft AI Updates: September 2, 2026

1. Azure AI Foundry Model Router Expands From Two Regions to 28

Microsoft. Foundry Model Router, which picks a model per request based on prompt complexity and cost targets, moved from two regions to 28 and refreshed the pool of models it can route between. The regional expansion matters more than it sounds for routing: teams under data residency constraints previously could not use the router at all, since routing decisions ran outside their region. Source