Microsoft gradually restores services after 16-hour outage, capacity still below baseline

Microsoft is gradually restoring services after an outage lasting over 16 hours, though the company says capacity has not yet returned to baseline levels. Recovery actions are proceeding in phases across the affected infrastructure. Microsoft reported incremental improvements in several workloads, but service health remains variable. Earlier, the company noted some restored servers could fail again once reconnected to the network. The outage also impacted third-party platforms, including OpenAI and Anthropic, which reported issues with connectors linking their chatbots to Microsoft 365 business accounts.