Satya Nadella

Their words

the thing that is the biggest competitor for any new accelerator is kind of even the previous generation of Nvidia right I mean in a fleet what I'm going to look at is the overall TCO

Their words

the improvement software improvements of really throughput in terms of tokens per dollar per watt that we're able to get uh you know quarter over quarter year over year is massive uh right so it's 5x 10x maybe 40x in some of these cases

Their words

the thing that you have to think through is not what you do in the next 5 years but what do you do for the next 50

Their words

Oh by the way the other thing is I didn't want to get stuck with massive scale of one generation.

Their words

we didn't want to just be a host for one company uh and have just a massive book of business with one customer that that's not a business right

Their words

You can't build an infrastructure that's optimized for one model. If you do that what if you go fall behind? In fact, all the infrastructure you built will be a waste, right?

Their words

it's kind of like databases right it's always the thing it's like hey can one database be the one that just is used everywhere except it's not uh there are multiple types of databases that are getting deployed uh for different use cases.

Their words

So this AI tool that comes in also has not just a raw computer uh because it's going to be more token efficient to use tools to get stuff done.

Their words

which I think is going to just keep growing because guess what it's going to grow faster than the number of users. So in fact that's kind of one of the other questions people ask me is hey what happens to the per user business at least the early signs may be the way to think about the per user business is not just per user it's per agent

Their words

In fact, I kind of look at it and say our business which today is an enduser tools business will become essentially an infrastructure business in support of agents doing work.

Their words

we will build our own applications scaffolding which will be model forward right it won't be a wrapper on a model but the model will be wrapped into uh the application

Their words

structurally I think there will always be an open- source model uh that will be fairly capable in the world that you could then use as long as you have something that you can use that uh with which is data uh and a scaffolding

Their words

so I can make the argument that oh my god uh if you're a model company you may be you may have a winner's curse you may have done all the hard work done unbelievable innovation except it's kind of like one copy uh away from that being commoditized

Their words

there's no birthright here that we should have any confidence other than to say hey we should go innovate and knowing the the lucky break we have in some sense is that uh this category is going to be a lot bigger than anything we had high share in

Their words

this fundamentally this category of coding and AI is probably going to be one of the biggest categories right it is a software factory category in fact it may be bigger than knowledge work

Their words

So this AI thing will be that right. So if you take coding um what we built with GitHub and VS code in over whatever decades uh suddenly the coding assistant is that big in one year and so that I think is what's going to happen as well which is the market expands massively.

Their words

whatever what took 70 years maybe 150 years for the industrial revolution may happen in 20 years 25 years

Their words

even if the tech is diffusing fast uh this time around for true economic growth to appear it has to sort of diffuse to a point where the work the work artifact and the workflow has to change and so that's kind of one place where I think uh the change management required for a corporation to truly change I think is something we shouldn't discount

Their words

But that has been the case with many technologies in the past. only humans did a lot of things and then we add tools that did them.