Microsoft is shutting down its DSP Xandr Invest by Feb. 28, 2026. This move marks a significant shift in the company’s advertising strategy, focusing on AI-powered solutions and personalized advertising experiences.
Xandr Invest, previously known as AppNexus, was acquired by Microsoft from AT&T in 2022.
The decision to close it is part of Microsoft’s broader pivot towards AI-driven advertising, leveraging its partnership with OpenAI to enhance ad targeting within its own ecosystem. In a statement, the company said the current DSP model doesn’t align with its goals of delivering more private and personalized ad experiences in an increasingly conversational and AI-driven landscape.
Instead, the company said it’s concentrating its efforts on the Microsoft Advertising Platform, a unified AI-powered buying platform aimed at driving improved business results in a digital environment that prioritizes agents and privacy.
By consolidating its ad platform, Microsoft aims to eliminate operational and technical fragmentation involved in maintaining a separate DSP infrastructure, streamline development costs, and provide a seamless media buying experience. This move also enables the company to leverage AI for precise audience segmentation while prioritizing data privacy.
According to experts, Microsoft’s shift to an AI-native ecosystem is a strategic move to stay ahead of changing regulations and evolving consumer expectations. However, the shutdown may lead to revenue declines for independent publishers, who rely on programmatic demand, and further consolidates power in the hands of tech giants.
Microsoft guarantees stability and continued support during the transition period. It also highlights the continued importance of its Microsoft Curate and Microsoft Monetize products for programmatic transactions and publisher monetization, indicating a commitment to comprehensive support beyond just replacing technology.
The move reflects a broader trend of consolidation in ad tech, with companies streamlining operations to focus on proprietary, AI-enhanced platforms. Other companies that have made similar moves include Google, which has consolidated ad tech stack, emphasizing AI-driven solutions like DV360; Amazon, which has focused on proprietary ad platform, leveraging AI for ad targeting and optimization; and The Trade Desk, which is shifting towards unified ID solutions and AI-driven ad buying.
