Microsoft Corporation (MSFT) Launches GridSFM to Cut $20B Grid Congestion Losses

Microsoft launched GridSFM, a foundation model (released May 13) designed to solve AC optimal power flow in transmission grids, aiming to cut roughly $20 billion a year in congestion losses. The model approximates optimal power flow in milliseconds and can evaluate far more scenarios in real time, potentially shifting grid operators from reactive fixes to proactive optimization. Microsoft also published an open U.S. grid dataset (May 8) that powers GridSFM, positioning the company to sell advanced grid-planning tools and strengthen its enterprise and cloud AI offerings. The move could expand Microsoft’s addressable market in energy infrastructure and support customer adoption of AI-powered operational software.