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Microsoft CEO Satya Nadella: I’ve been through four major shifts, AI is the fifth

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Microsoft CEO Satya Nadella recently stated in an exclusive media interview that Microsoft has experienced four major changes and is currently undergoing the fifth major change, namely artificial intelligence.

Satya Nadella also said that if you cannot adapt to new technological changes, you may lose everything.

In addition, Satya Nadella said in the interview that completing the Activision Blizzard deal was his best business decision to date. On the evening of October 13th, Beijing time, Microsoft officially announced that it had completed the US$68.7 billion acquisition of Activision Blizzard.

The following are three issues Satya Nadella discussed in an exclusive interview with the US online media BI:

  1. Microsoft’s acquisition of Activision Blizzard has been approved by regulators. Why is this $65 billion deal so important?

Satya Nadella: Yes, the acquisition price is high, but we are very excited about it. For us, there are some things that go back to the beginning of the company, and gaming is one of them. When people think of Microsoft, they probably think of developer tools, proprietary software, and games. These are three things we’ve been doing since the beginning.

So, for us, gaming is an area where we feel we can make a real contribution in the consumer market. If you look closely, you’ll see that the amount of time people spend playing games is increasing, and Gen Z will spend more time playing games. The way games are made and distributed is fundamentally changing. This is true whether it is phones, game consoles, PCs or even cloud computing.

With this in mind, we’re looking forward to doubling down on our efforts in our dual roles as game producers and publishers. Now, we will be one of the largest game publishers and a company that builds platforms for games.

  1. Where do you think Microsoft’s greatest potential lies?

Satya Nadella: To me, our biggest opportunity is artificial intelligence (AI). Just as cloud computing has transformed all software categories, we believe artificial intelligence is such a transformative shift. Whether it’s search or our Office software suite, there’s going to be a sea change.

The way we create documents and spreadsheets or consume information is fundamentally changing. Therefore, the Copilot concept we are introducing will be truly revolutionary in terms of driving productivity improvements and communication. The same goes for software development. The fact that human jobs, whether frontline or knowledge work, can be augmented by AI Copilot will be the biggest transformation.

  1. What do you think is the biggest risk facing Microsoft? What are you most afraid of?

Satya Nadella: I’m looking for two things. In technology, there is no such thing as franchise value. I’ve lived through four major shifts: first the dominance of PCs and Windows, then the rapid growth of the web, mobile and cloud computing, and now artificial intelligence, and I’m very focused on the technological shifts that fundamentally change all categories.

If you fail to adapt to new technological shifts, you risk losing everything. Technological changes are one aspect. The other is the change in business models. You cannot expect the future business model to be exactly the same as the past business model. Cloud computing is a good example. We have a great server business model, and cloud computing is completely disruptive. I think this is something to be aware of.

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