Microsoft Unveils Azure Functions Serverless Agents Runtime at Build 2026
By
Steef-Jan Wiggers
Summary
Microsoft announced the public preview of Azure Functions serverless agents runtime at Build 2026, transforming the event-driven compute service into a platform for building and hosting AI agents. The key innovation is a markdown-first programming model where agents are defined in .agent.md files, allowing instructions, tools, connections, and behavior to be declared in a single readable document. Any Azure Functions trigger (HTTP, Timer, Service Bus, Event Hubs, SQL, Cosmos DB) can spawn an agent, and the platform supports MCP server access with over 1,400 connectors and sandboxed execution.
Source
Key quotes
· 2 pulledThe headline change: agents are defined in .agent.md files, a markdown-first programming model in which an agent's instructions, tools, connections, and behavior are declared in a single readable document rather than scattered across code files.
Any Azure Functions trigger can now spawn an agent: HTTP, Timer, Service Bus, Event Hubs, SQL, Cosmos DB, or the new connection-backed triggers for Team
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