Satya Nadella did not attend for long and mainly talked about the rise of artificial intelligence and its impact on the company’s data infrastructure such as Azure.

Satya Nadella said in the interview:

 Workloads, workload patterns, and training operations need to be advanced simultaneously, and the amount of data and parallel processing are more complex than before.

 So the first thing we've been doing is collaborating to build the underlying systems, from power to data centers to racks to accelerators to networking, from the way we think about it to actually running it, the way Azure operates has happened A sea change.

 To support these models that OpenAI is enhancing, the company is changing rapidly. So our first job is to build the best system so we can build the best models and then make it all available to developers.

In his keynote speech, Sam Altman said:

 I think we have the best partnership in technology. It's clear that both OpenAI and Microsoft are happy with their collaboration, and the relationship will be even stronger for the foreseeable future, especially as more developers sign up for Azure to use OpenAI's tools and services.

During DevDay, OpenAI announced a plan to allow developers to create their own ChatGPT services without coding. It also launched a preview of its GPT-4 Turbo model, which has “knowledge of world events as of April 2023” and is cheaper to use than ChatGPT 4.

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Sundar Pichai made the suggestion after Tim Cook said he wanted Apple and Google to become “deep partners.” He told Cook that pre-installing the Google search app would bring more traffic to Google and thus more revenue to Apple. Apple and Google have long had a search engine deal, with Google paying $18 billion to $20 billion a year to be the default search engine on Apple devices, but in 2018, Apple’s revenue share fell.

As a result, Sundar Pichai said Tim Cook should consider allowing Google to design an app or other native iPhone experience for iOS that would get people searching on Google more often. “We said, there is a great feature on Android that can increase usage, which is the Google Search app. So I proposed that we can develop a Google Search app for iOS… and we will commit to supporting this product long-term,” Pichai said. Yi said.

It is noted that although Apple’s iPhones come pre-installed with many applications developed by Apple, Apple has never pre-installed third-party applications, which may be the reason why the company did not accept Sundar Pichai’s proposal.

According to Sundar Pichai, he meets with Tim Cook about once a year to discuss the search agreement between Google and Apple, which is also a focus of the antitrust lawsuit. The U.S. Department of Justice believes that Google has a search monopoly and has become a “gatekeeper of the Internet” and has filed lawsuits against some “exclusive agreements” between Google and Apple and other companies.

Eddy Cue, Apple’s head of services, testified in September that Apple used Google as its default search engine because the company “always believed it was the best” and had no “effective alternatives.” “.

Currently, Google is the default search engine on all Apple devices. Although users can change the search engine on Apple products, many users don’t do so. If the lawsuit determines that Google has engaged in antitrust activity, the agreement between Apple and Google may be terminated, requiring Apple to provide more search engine options during the device setup process.

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Image source: Bing Chat

Nadella recently went to Axel Springer headquarters to receive the 2023 Axel Springer Award. During the award event, he was interviewed by Mathias Döpfner, CEO of Axel Springers.

In the interview, Nadella said: “I think artificial intelligence (AI) needs a certain degree of global governance, and the governance process will inevitably be accompanied by some competition. If we want to form a successful artificial intelligence regulatory mechanism , global cooperation like that of the International Atomic Energy Agency is needed.”

Meta’s Mark Zuckerberg and Google boss Sundar Pichai attended the closed-door meeting, as did former Microsoft CEO Bill Gates and current Microsoft CEO Satya Nadella.

It was previously reported that Nadella said in an interview with BI:

 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.

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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.

2. 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.

3. 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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As Google became the default search engine for Safari on all Apple devices, people had grown accustomed to using it, Satya Nadella explained in testimony during the Google v. U.S. Department of Justice antitrust trial.

“You get up in the morning, brush your teeth, and then you Google it,” Satya Nadella said. “As habits form, the only way to change them is to change the default settings.”Satya Nadella went on to say that Google was able to use its roughly 90% market share to improve search results and further solidify its monopoly. He said it was “fake” that there was choice in the search engine market.

Microsoft has been trying to steal Google’s market share by adding OpenAI chatbot technology to Bing, but Nadella said it is unclear to what extent AI can reshape the existing market because Google’s distribution advantage will not disappear. . “I’m very worried about it,” he said. “As much as I’m enthusiastic about a new breakthrough in AI, the vicious cycle we’re trapped in is likely to intensify.”

Last week, iTunes CEO Eddy Cue testified at the trial and explained that Apple chose Google as the default search engine on its devices because the company “always thought it was the best.” Google does pay Apple billions of dollars a year to remain the default search engine, and Eddy Cue claims there is no effective alternative.

According to a previous report citing Bloomberg, Microsoft had approached Apple as early as 2020 and proposed Bing as a potential acquisition target, but negotiations between Microsoft executives and Eddy Cue have not made progress.

It’s worth mentioning that Bloomberg’s Mark Gurman said Apple has considered creating its own search engine. Such a solution would offer better privacy and deeper integration with Siri and Spotlight, and Apple has developed search tools for apps like the App Store and Apple TV.

Mark Gurman said Apple’s head of AI, John Giannandrea, leads a search team within Apple that has created the next generation search engine for Apple apps. The search technology, codenamed “Pegasus,” provides more accurate results.

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Although the hearing was not made public, Bloomberg obtained some clips of Nadella’s testimony before the judge. During the hearing, Nadella mentioned that Microsoft has spent approximately $100 billion to build and develop its Bing search engine. He also pointed out that although Microsoft lags behind Google in market share, it believes it can contribute to the Internet search industry.

 I think search or internet search is the largest software category. We are a very, very low share player but will continue to persist because we think it is a software category that we can contribute to.

Satya Nadella also told Google lawyers that Microsoft “is competing against companies that have 97 percent share.”

According to Reuters, Satya Nadella also talked about user preferences for services. He noted that switching search engines is easier on desktop, but becomes more complicated on mobile. This ties in with testimony last week from Microsoft executive Jonathan Tinter, who claimed that Microsoft had to make Google the default search engine on its Surface Duo smartphones in order to obtain Android licenses from Google.

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Satya Nadella content is as follows: “We will continue to promote the regulatory approval process, and have the confidence to complete this transaction.”

Microsoft’s acquisition of Activision Blizzard has so far been approved by the governments of 39 countries, and Microsoft and Activision Blizzard have recently signed an agreement to extend the deadline for completing the acquisition deal to 18 October.

The biggest obstacle to the deal is the UK’s Competition and Markets Authority (CMA), which rejected Microsoft’s acquisition of Activision Blizzard in April this year, fearing that competition in the cloud gaming market would be damaged.

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As one of the world’s largest companies by market capitalization, Microsoft doesn’t usually release financial projections for the future. In its latest earnings call, the company provided guidance only for the period ending in the current period, the fourth fiscal quarter.

In a newly disclosed 15-page memo and a 21-page document, Satya Nadella said Microsoft will achieve its fiscal 2030 goals “by implementing a growth-oriented, evolving strategy that is aligned with our enduring mission and culture.

Satya Nadella also forecasted shareholder returns, including dividends and buybacks.

In the document, dated June 7, 2022, he wrote: “We believe this ambition and approach will help us deliver annual returns to shareholders in excess of 10 percent over this period.”

Satya Nadella described a “20/20” goal of 20 percent year-over-year revenue growth and 20 percent operating profit growth in fiscal year 2022 and subsequent years. Microsoft’s financial results, released at the end of July last year, showed revenue growth of 18 percent to $198.27 billion and operating profit growth of 19 percent in fiscal 2022.

In the memo, Satya Nadella used the term “Microsoft+” to describe products aimed at consumers. But he said the main driver of growth was Microsoft Cloud, a term that refers to a range of products for business customers, including Azure public cloud (competing with Amazon AWS and Google Cloud), part of Microsoft 365 productivity software and part of LinkedIn.

In the accompanying document, Satya Nadella wrote, “Our top priority is to maintain above-market-rate growth to extend our lead over GCP and close the gap with AWS.”

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Part of Nadella’s speech is as follows:

 Teams usage is at an all-time high, with more than 300 million monthly active users during the quarter.

 Our customers recognize the value Microsoft Teams creates in their everyday collaboration, chats, meetings, and calls. This has further attracted new subscribers such as ABN AMRO, Jaguar Land Rover, Mattress Firm, Unisys and Vodafone.

Microsoft Teams is the teamwork tool in Microsoft 365 that brings together the people, content, and tools your team needs to drive team engagement and productivity. Bring people together from anywhere to work together face-to-face online with video conferencing in Teams.

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Microsoft decided to limit its chat responses to 50 questions per day, with five responses per question, after discovering that Bing was insulting, deceiving, and even manipulating users’ emotions.

“Our data shows that the vast majority of people find the answer they’re looking for within 5 replies, and only about 1% of chat conversations result in more than 50 messages.”

According to reports, if users hit the five-answer limit, Bing will prompt them to start a new topic to avoid lengthy chats.

Earlier this week, Microsoft warned that these long chat sessions with 15 or more questions could cause Bing to “become repetitive or be prompted/provoked to give responses that aren’t necessarily helpful or as we designed them.” .” Microsoft argued that ending the conversation after five rounds meant “models don’t confuse.”

Microsoft is still working on improving Bing’s design, but it’s unclear how long the restrictions will last. Microsoft only said: “As we continue to get feedback, we will explore increasing the upper limit of chat sessions.”

There was a small climax in the technology circle last week about chatbots. Both Microsoft and Google tried to pre-empt it by showing an early version of AI search. Microsoft even announced that the company’s AI search attracted more than 1 million people to sign up in just 48 hours.

This technology can give direct answers to users’ questions, and it looks like it was created by a real person. Microsoft CEO Satya Nadella said the technology “could lead to an industrial revolution in knowledge work.” But for those concerned about accuracy, AI leaves a lot to be desired.

The ChatGPT-like technology embedded in Bing search analyzed earnings from Gap and Lululemon during a Microsoft demo. However, after comparing the answers given by industry insiders with the original financial report, they found that this chat robot missed some data and even fabricated some content.

“Bing AI gave some completely wrong answers during the demo, and no one noticed,” wrote independent search engine researcher Dmitri Brereton. “Instead, everyone is Excited about the promotion of Bing.”

Brereton found that, in addition to errors in the financial numbers, there may have been factual errors in Microsoft’s presentation answers about vacuum cleaner specifications and Mexico travel plans. Brereton didn’t initially want to “pick” Microsoft, he just accidentally discovered these problems when he carefully compared Microsoft’s and Google’s answers.

AI experts call this phenomenon “phantomism,” or the tendency for tools based on large language models to make up content. Last week, Google unveiled a competing artificial intelligence tool that also had factual errors in a demonstration — but the errors were quickly discovered.

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