In episode 48 of the CXO Minute, Tony Uphoff explains why Microsoft‘s pivot to artificial intelligence (AI) is history repeating itself, as the strategic emphasis on AI is shaping the future of technology.
00:13 — Microsoft recently announced the third phase in its partnership with OpenAI, the parent company of ChatGPT. Not-yet-confirmed reports suggest that Microsoft will invest an additional $10 billion in the company. Microsoft emphasized that this is a “commercial partnership” and CEO Satya Nadella says the partnership will accelerate “breakthroughs in AI” and help both companies commercialize advanced technologies.
01:00 — What makes the Microsoft and OpenAI partnership such a big deal? Tony says, in essence, this is history repeating itself. In 1995, Bill Gates, the former CEO of Microsoft, wrote an internal memo outlining the urgent need for the company to pivot around the internet. He suggests that Gates correctly saw that the internet would become the next computing platform and, as such, represented an existential threat to Microsoft.
01:45 — In a recent announcement, Nadella announced that Microsoft would be laying off 10,000 employees and noted that the company must shift its focus to the next major wave of computing: AI.
02:23 — Tony believes that Nadella is correct. AI represents the biggest technology transformation since the internet and holds the potential to have an even bigger impact. The aggressive steps by Microsoft to embrace and operationalize AI “harken back to the bold pivot the company made around the internet nearly 30 years ago,” says Tony, who senses that this strategic move may reshape the technology landscape as it is known today.
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