Satya Nadella calls Microsoft’s size a “massive disadvantage” in AI — Bill Gates’ software factory vision won’t cut it

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Despite rumors that leading AI companies like OpenAI and Anthropic are struggling to find enough good data to improve their AI models, competition in the field of generative AI is actually increasing.

Despite massive investments in rapidly developing AI technology, investors remain worried about a lack of clear path to profits. Bill Gates, Microsoft’s co-founder, has cautioned that AI could be experiencing a bubble similar to the dot-com boom of the late 1990s, which ended in a major market crash when many internet companies proved overvalued.

Microsoft has become a leader in generative AI, largely thanks to its significant investment in OpenAI and the integration of OpenAI’s advanced technology into its products and services.

I’ve been watching Microsoft’s big push into AI – they’re really putting a lot of money and effort into weaving it into everything they do, even Windows. There’s talk that Windows could become something completely different, almost like a smart assistant built into your operating system. But it seems like CEO Satya Nadella is finding it tricky to actually guide the company through this huge shift and fully embrace an AI-focused future.

In a conversation with Axel Springer CEO Mathias Dpfner, Microsoft’s Satya Nadella revealed he dedicates much of his weekends to studying how startups create products. Nadella also suggested that Microsoft’s large size is actually hindering its efforts to become a leader in artificial intelligence, according to Business Insider.

I spent the whole weekend learning about how modern companies develop their products.

Microsoft CEO, Satya Nadella

The company executive explained that startups can make fast, smart decisions because the entire product team works closely together. Interestingly, Satya Nadella suggested a way to achieve this same agility: letting go of outdated practices that previously led to success and adopting new methods.

It’s noteworthy that Nadella is sharing these thoughts. Previously this year, he suggested Microsoft was shifting away from the groundbreaking software ideas of Bill Gates – the very ideas that were key to the company’s huge achievements. He believes that approach may no longer be effective with the rise of artificial intelligence.

Microsoft plans to focus heavily on security, improving quality, and using AI to drive its business in the future.

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2025-12-08 16:14