Satya Nadella Talks New AI Powered Windows, Fostering Competition

Bloomberg Audio Studios, podcasts, radio news.

Welcome to our Bloomberg television and radio audiences. I'm here in Redmend, Washington with Microsoft CEO Sacha Nadala with some big unveilings at Build today.

Sacha, thank you so much for joining us.

You've got a new version of Windows powered by AI that basically means you have your own AI agent on your own device. How will this AI powered hardware experience be totally different from what we've seen before?

First, well, thank you so much for having me Emily end up.

Yeah, I mean it's really a ground up, you know, reimagination from Silicon So we have a new SoC that has the NPU. So think about it as we've always had CPUs and GPUs and now you have newler processing units to in fact locally process these AI models. We have forty plus AI models that are local.

On Window.

Those machines that then are being used by a variety of experiences that we are built into Windows, starting with this photographic memory feature called Recall, which is just phenomenal. And of course Copilot is built in to Windows and Copilot is just not an app, it's sort of a shell affordance that's going to be there assisting you as

Ah, I bet you're pretty good on Minecraft just a hunch. This new feature recall means your computer basically has a photographic memory of.

Everything you do on it.

And the speed at which this is all happening is just so fast. It seems so unpressed. How will this really make things different for consumers and change our daily routines?

Yeah, I think if you think about the PC, it has always been about you know, creating things right, which is it's about being able to synthesize lots of information, create new information, pass better judgment, gain insights, and act. Right, that's what you sort of do on a PC. AI is an assistant AI helps you, as a as an end user, do anything right. One of the most beautiful demos today was even this thing called co Create. Right.

Microsoft has had trouble keeping up with some of the new cutting edge Max and you did do a lot of side by side comparisons today. Have you narrowed the gap today truly? And how much share do you think you can take from Apple?

Well, I mean, I think today was a day where we brought some of the efforts that we've had for a long time all into focus and really brought cohesiveness to them. For example, we've been on this journey to bring I call it arm based PCs for a while. Finally we now have the best ARM processors, which are really the performance of the CPU itself is cutting edge. Then you combine it with the NPU and these experiences. I think we are now going to start just like you know, when it comes to the cloud.

Let me take you another one, right, which is.

When we were We came from second and what became a leader in the AI age on the cloud.

I hope on the PC we bring good competition. I mean, Apple has done a fantastic job.

We now want to bring real competition back to the Windows versus Mac.

When it comes to the aihe.

You've been doing a lot of unique deals to move quickly, for example, this six hundred and fifty million dollar investment in Inflection.

You hire the team, you hire the co founder, must office Suliman. Are you at all.

Worried that regulators are going to crack down on investments and aqua hires the way they have cracked down on M and A like.

Do you wish you could be buying these companies outright.

I mean, look, I mean the regulators have to do what they have to do to make sure that ultimately there's competition, right, I mean, if that is the case, then I think I think one of the fundamental things that I think all regulators need to stay rounded on is where is competition?

What are the sources of competition, and how.

To foster them? To me, that's what we're doing right today. There is formidable amount of competition, right, whether it is between the big players or the small pla and there's partnerships are also a source of competition. So I don't think that this is about any one company acquiring or not acquiring, But it's about competition. And as long as regulators focused on that and we focus on it, I think we'll be fine.

Microsoft just took a big stake in the Abu Dhabi AI company G forty two.

Brad Smith joined the board.

This is a company that at least at one point had ties to China. So there do seem to be some big geopolitical implications here.

Is this your play in a tech cold war?

You know, first of all, you know it is important for us to be grounded on the fact that we're a multinational company, but that also happens to be an American company. So we did this partnership with G forty two and the UAE, with sort of the real involvement of the US government as well, where the US government has now an assurance program with the UAE, which both the government, you know, it's a state to state agreement, and that allowed us in fact created the conditions for G forty.

Two and Microsoft to come together.

But I think it's important for us as a company to be grounded in the fact that we need great partners who then allow us to expand what we are doing globally, right because at the end of the day, one of my dreams has always been Emily that can the you know, the information revolution, perhaps after the Industrial Revolution was magical in the sense that it diffused fast around the world, but this intelligence revolution, to me, can even take it even to the next level, right, which

Open Ai is your closest partner in Microsoft hit history. They just released a chat GPT app for Mac before Windows, and we're reporting the same as going to happen for the iPhone. How do you balance partnering with them and competing for their attention?

Yeah?

First of all, you know, like open Ai, you know, will decide how to prioritize platforms and and how to really go about managing their roadmap.

Would be very excited.

In fact, you know, I'm thrilled to you know today when you saw the launch, we basically took gpto and made it part of Core Pilot. So Windows is going to have some of the latest innovation from open Ai and the latest innovation from Microsoft built into Windows. So therefore, I'm thrilled about their prioritization of the Mac.

Chat GPT four. Oh is you know, it's pretty big?

Wow.

Have you tried chat GPT five?

So that the latest? Oh?

Yeah, of course?

What about the next one? We hear reasons you mean, so the.

Next version, which I believe is not been named, so I don't want to talk for them, but you know, look, I think open Ai as a company has really focused a lot on not only moving the frontier forward, but also doing it with really safety first, and so they're very carefully thinking about what's the next big model. But the thing that GPTO like, I don't want to understate the innovation in what they just launched last week, right, which is just the first time they've been able to

You know.

It's most people think, oh, GPT four came out what fifteen sixteen months ago, but it's not been static. It has been continuously getting better and we're excited about it.

So on that note, you stress trust a lot in your keynote today, But there have been renewed concerns over the week and about safety at open AI. More key employees have left, one saying safety has taken a backseat to.

Shiny new products.

What kind of conversations have you had with Sam Molman about this look.

I mean, at least one of the fundamental things that broad Open Air and Microsoft together way back even in twenty nineteen was that focus on how do we make sure that we could make progress. At that time, it is not even clearest whether things will even work the way they work, right, But even there, that company was very grounded on their mission around Hey, we want to bring the benefits of this to the broadest set of

You can't just deploy.

I mean, if I take the base model, like even take today's announcement, it's just so important, right, Windows now will have forty plus models that are going to be onboard on Windows. But guess what, in order to keep them safe, we will use the Azure AI service because we will be learning every hour of every day what is the new adversarial attack, and that knowledge, that learning will keep all the AI models safe. Because the next jail break that happens, we'll learn about it and make

Safe, all right, Microsoft CEA, oh saucha nidala, thank you so much for joining us. I'm going to send it back to you guys, and thanks to our Bloomberg television and radio audiences,