Recently, Microsoft's CEO Satya Nadella clearly outlined Microsoft's strategy in artificial intelligence (AI) and cloud computing, highlighting the differences with competitors such as Oracle. Nadella stated that Microsoft does not aim to pursue short-term profits by providing low-margin cloud services to a small number of large AI customers. Instead, Microsoft focuses on building an ecosystem that can serve a broad range of customers.
He pointed out that Oracle plans to surpass Microsoft's computing capabilities by 2028 through low-margin managed transactions, which Nadella considers shortsighted. He believes that as the AI market matures, companies like OpenAI, Anthropic, and DeepMind will become the foundational layer for thousands of new products and services. Microsoft's goal is to support this ecosystem, not only by providing computing power but also by offering the necessary infrastructure and tools to promote the development of next-generation AI innovations.
Additionally, Nadella mentioned that AI is fundamentally transforming Microsoft's core business. Office, once primarily a user tool, is now evolving into the infrastructure for AI agents and digital assistants. This means future pricing strategies may change, possibly shifting from per-user billing to charging based on the usage of AI agents, reflecting the increasing role of automation in the workplace.
Nadella also emphasized that technical performance is not the only standard for leadership in the AI field. The trustworthiness of the company, as well as the trust in the country and its institutions, is equally important. He stated, "Trust in American technology may be the most critical characteristic. It's not just about model capabilities, but whether 'I can trust your company, and whether I can trust your country and institutions as long-term providers.'"
In the current context of changing political landscapes, Nadella's remarks are particularly significant. After Trump's re-election, the EU has made efforts to reduce its reliance on American tech companies. Although the EU's AI independence plan is progressing slowly, it still faces challenges due to the lack of necessary computing power.
Key Points:
🌐 Microsoft CEO Nadella stated that Microsoft does not pursue low-margin cloud computing transactions, focusing instead on long-term sustainability.
💼 AI is changing Microsoft's core business, and future pricing may be adjusted based on the usage of AI agents.
🔑 Trustworthiness of the company is as important as technical performance, and Nadella emphasized that trust is key to gaining a competitive advantage in the market.
