Wednesday, June 14, 2023

Microsoft's Satya Nadella Is Betting Everything on AI

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Microsoft's Satya Nadella Is Betting Everything on AI   

I never thought I'd write these words, but here goes. Satya Nadella and Microsoft, the company he runs are riding high on the buzz from its search engine. That's quite a contrast from the first time I spoke with Nadella, in 2009. Back then, he was not so well known, and he made a point of telling me about his origins. Born in Hyderabad, India, he attended grad school in the US and joined Microsoft in 1992, just as the firm was rising to power. Nadella hopped all over the company and stayed through the downtimes, including after Microsoft's epic antitrust court battle and when it missed the smartphone revolution. Only after spinning through his bio did he bring up his project at the time: Bing, the much-mocked search engine that was a poor cousin, if that, to Google's dominant franchise.

As we all know, Bing failed to loosen Google's grip on search, but Nadella's fortunes only rose. In 2011 he led the nascent cloud platform Azure, building out its infrastructure and services. Then, because of his track record, his quietly effective leadership, and a thumbs-up from Bill Gates, he became Microsoft's CEO in 2014. Nadella immediately began to transform the company's culture and business. He open-sourced products such as .net, made frenemies of former blood foes (as in a partnership with Salesforce), and began a series of big acquisitions, including Mojang (maker of Minecraft), LinkedIn, and GitHub networks whose loyal members could be nudged into Microsoft's world. He doubled down on Azure, and it grew into a true competitor to Amazon's AWS cloud service. Microsoft thrived, becoming a $2 trillion company.

Still, the company never seemed to fully recapture the rollicking mojo of the '90s. Until now. When the startup OpenAI began developing its jaw-dropping generative AI products, Nadella was quick to see that partnering with the company and its CEO, Sam Altman, would put Microsoft at the center of a new AI boom. (OpenAI was drawn to the deal by its need for the computation powers of Microsoft's Azure servers.)

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