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Microsoft CEO Says AI Is a Tidal Wave as Big as the Internet

 10 months ago
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Microsoft CEO Says AI Is a Tidal Wave as Big as the Internet

Emily Chang
Thu, August 17, 2023, 11:00 PM GMT+9·3 min read

(Bloomberg) -- In 1995, Microsoft Corp. co-founder Bill Gates sent a memo calling the internet a “tidal wave” that would be crucial to every part of the company’s business. Nearly two decades later, Microsoft’s current leader, Satya Nadella, said he believes the impact of artificial intelligence will be just as profound.

Most Read from Bloomberg

“The Bill memo in 1995, it does feel like that to me,” Nadella said on this week’s episode of The Circuit With Emily Chang. “I think it’s as big.”

Central to the latest attempt to transform Microsoft is OpenAI Inc., a startup whose generative AI technology has created so much buzz that it snagged a $13 billion commitment from the software giant.

“We have a great relationship,” OpenAI Chief Executive Officer Sam Altman said on The Circuit. “These big, major partnerships between tech companies usually don’t work. This is an example of it working really well. We’re super grateful for it.”

The alliance has plenty of critics. The loudest is Elon Musk, who co-founded OpenAI with Altman and then split from the company, citing disagreements over its direction and the addition of a for-profit arm. He has said OpenAI is now “effectively controlled by Microsoft.”

In response to a question about Musk’s critiques and the prospect that Microsoft could acquire OpenAI, Altman said, “Company is not for sale. I don’t know how to be more clear than that.”

Just as Netscape inspired Gates’ internet memo, the creation of OpenAI, and Microsoft’s support of it, was spurred in part by the threat of Google dominating AI. The architecture for OpenAI’s ChatGPT and Microsoft’s Bing chatbot, known as transformers, was invented by Google. Although Google remains competitive in AI, Microsoft and OpenAI are seen as the early leader.

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