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Satya Nadella talks about Microsoft’s new AI strategy. Asks “if you’re [only] a consumer of foundation models…how can you create enterprise value?” In his view, companies should combine their internal IP and tacit knowledge with an AI “hill-climbing machine” (reinforcement learning, custom evals) that is model agnostic. Obviously, he...

139,960 Aufrufe • vor 1 Monat •via X (Twitter)

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Microsoft CEO Satya Nadella's new interivew: Explains how the next AI moat will not be the model you use, but the learning loop only your company can run. He is really asking what happens to the firm when intelligence becomes something you can rent. For a century, companies protected value through people, processes, data, routines, customer memory, and the tacit knowledge buried in daily operations. Foundation models threaten to flatten that advantage because the same general intelligence can be used by everyone. Nadella’s answer is that firms need their own “hill climbing machine,” a private loop where models learn from company-specific tasks, traces, evaluations, and outcomes. That means the real asset is not just the model. The asset is the environment that keeps improving the model in ways competitors cannot copy. Private evals become strategic memory. Workflow traces become training signal. Human judgment becomes a way to steer compounding, not just correct mistakes. This also reframes AI adoption: a company that only consumes a foundation model may gain productivity, but it may leak the deeper value of its operating knowledge. A company that builds a disciplined learning loop can turn everyday work into accumulating IP. The future firm may therefore be measured by how well it converts its unique activity into durable model improvement. The frontier will not belong only to whoever owns the largest model. It will belong to whoever owns the best loop. ---- From "Stanford Online" YouTube channel, (link in comment)

Rohan Paul

83,362 Aufrufe • vor 1 Monat

Satya Nadella says the AI industry has talked so much doom that people have stopped wanting it to succeed: "All economic opportunity will go away for knowledge workers." "White-collar jobs are gone. And then you're saying, I'm excited about building that technology." "Why would anyone want you to be successful? I mean, I don't want you to be successful. I mean, this just makes no social sense." "When you have someone in a college commencement be booed because they're saying AI, it means we have now crossed over to people who don't believe us, and rightfully so." "If you're building a data center, let's make sure that that community believes that this data center is great for them. It's for their tax base, for their community efforts, their real estate value, their schools, their water use, their electricity prices." "We can't abstractly even say... there's going to be new jobs. What are the new jobs? What are the wages of the new jobs that I can now go apply for, train myself for?" Notice who is saying this. Nadella runs one of the largest AI buildouts in the world, and he is saying in public that people have stopped believing the industry, and that they are right. And his fix is specific. Name the new jobs and the wages someone can actually train for. Make the data center pencil out for the town that hosts it, in taxes, schools, water use and electricity prices residents can check for themselves. Every one of those claims can be verified or shown false. Almost nobody building AI talks this way today. - Satya Nadella (Satya Nadella), Chairman and CEO of Microsoft, on Possible with Reid Hoffman (Reid Hoffman).

Karl Mehta

40,305 Aufrufe • vor 24 Tagen