Name: Microsoft CEO Nadella on AI PC Plans, Taking on Apple, Fostering Competition
Uploaded: 2024-05-27T06:54:16.000Z
Duration: 9 min 42 s
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The comparative

You've got a new version of Windows powered by A.I. that basically means you have your own A.I. agent on your own device. How will this A.I. powered hardware experience be totally different from what we've seen before. First of all thank you so much for having me Emily. And yeah I mean it's really a ground up you know reimagination from Silicon. So we have a new S.O.C. that has the N.P.U. So think about it as we've always had CPUs and GPUs and now you have neural processing units to in fact locally process these A.I. models. We have 40 plus A.I. models that are local on Windows machines that then are being used by a variety of experiences that we have built into Windows starting with this photographic memory feature called recall which is just phenomenal. And of course Copilot is built in to Windows and Copilot is just not an app. It's sort of a shell affordance that's going to be there assisting you as you. You'll be short a demo of somebody playing Minecraft and you know me just sharing my Minecraft screen with Copilot and Copilot helps me finally be as competitive with my daughter on Minecraft as always dreamed of. Right. And so and then of course the third parties I mean Adobe showed how they're bringing all of what they do to Copilot plus PCs and and many many more other developers. So it's an exciting day for us to have a complete rethink on the full stack of Windows for the age. I bet you're pretty good on Minecraft. Just a hunch. This new feature recall means your computer basically has a photographic memory of everything you do on it and the speed at which this is all happening is just so fast. It seems so unprecedented. How will this really make things different for consumers and change our daily routines. Yeah I think if you think about the PC it has always been about you know creating things right. Which is it's about being able to synthesize lots of information create new information pass better judgment gain insights and act right. That's what you sort of do on a PC. AI is an assistant.

To-infinitive

AI helps you as a as an end user do anything right. One of the most beautiful demos today was even this thing called co-create right. I am in paint and I'm painting a nice spring Seattle day and I want mountains with wild flowers and I can now have the AI assistant that painter in me now can be inspired by AI. But ultimately I'm the one painting and I get that satisfaction. I feel one of the things that's been one of my co-workers was telling me when her 5 year old is saying for the first time give me designer time. That's what felt. You know it feels like in the late 80s and the early 90s when we all got fell in love with PCs. That was what really got us going which is the ability to use computers to create. And I think this AI is just going to take it to the next level. Microsoft has had trouble keeping up with some of the new cutting edge Macs and you did do a lot of side by side comparisons today. Have you narrowed the gap today. Truly. And how much share do you think you can take from Apple. Well I mean I think today was a day where we brought some of the efforts that we have had for a long time all into focus and really brought cohesiveness to that. Right. For example we've been on this journey to bring a call that arm based PCs for a while. Finally we now have the best on processors which are really the performance of the CPU itself is cutting edge. Then you combine it with the N.P.U. and these experiences. I think we are now going to start just like you know when it comes to the cloud. Let me take another one. Right. Which is when we were we came from second and became a leader in the AI age on the cloud. I hope on the PC we bring good competition. I mean Apple has done a fantastic job. We now want to bring real competition back to the windows versus Mac when it comes to the age. You've been doing a lot of unique deals to move quickly. For example the 650 million dollar investment in inflection. You hired the team. You hired the co-founder Mustafa Suleyman. Are you at all worried that regulators are going to crack down on investments and aqua hires the way they have cracked down on M&A. Like do you wish you could be buying these companies outright. I mean look I mean the regulators have to do what they have to do to make sure that ultimately there's competition. Right. I mean if that is the case then I think I think one of the fundamental things that I think all regulators need to stay grounded on is where is competition. What are the sources of competition and how to foster them. To me that's what we are doing right today. There is formidable amount of competition right. Whether it is between the big players or the small players and there's partnerships are also a source of competition. So I don't think that this is about any one company acquiring or not acquiring. But it's about competition. And as long as regulators focused on that and we focus on it I think we'll be fine. Microsoft just took a big stake in the Abu Dhabi A.I. Company G 42. Brad Smith joined the board. This is a company that at least at one point had ties to China. So there do seem to be some big geopolitical implications here. Is this your play in a tech cold war. You know first of all you know it is important for us to be grounded in the fact that we're a multinational company but that also happens to be an American company. So we did this partnership with G 42 and the UAE with sort of the real involvement of the U.S. government as well where the U.S. government has now an assurance program with the UAE which both the government. It's a state to state agreement. And that allowed us in fact created the conditions for G 42 and Microsoft to come together.

Future simple

But I think it's important for us as a company to be grounded in the fact that we need great partners who then allow us to expand what we are doing globally. Right. Because at the end of the day one of my dreams has always been Emily that can be in the information revolution. Perhaps after the Industrial Revolution was sort of magical in the sense that it diffused fast around the world. But this intelligence revolution to me can even take it even to the next level. Right. Which is when people in the Middle East or whether it's in Asia or Africa or Latin America can enjoy the benefits of this technological wave. That's not going to require real partnerships. And I'm very very excited about this one. Open A.I. is your closest partner in Microsoft history. They just released a chat GPT app for Mac before Windows and we're reporting the same is going to happen for the iPhone. How do you balance partnering with them and competing for their attention. First of all you know like opening I will decide how to prioritize platforms and and how to really go about managing their road map. And we're very excited. In fact you know I'm thrilled. You know today when you saw the launch we basically took GPTO and made it part of co-pilot. So Windows is going to have some of the latest innovation from open A.I. and the latest innovation from Microsoft built into Windows. So therefore I'm thrilled about their prioritization of the Mac chat GPT 4 0 is you know it's pretty big. Wow. Have you tried chat GPT 5. So the latest. Yeah of course. What about the next one. We hear reason. Oh you mean. So the next version which I believe is not being named. So I don't want to talk for them. But you know look I think open A.I. as a company has really focused a lot on not only moving the frontier forward but also doing it with really safety first. And so they're very carefully thinking about what's the next big model. But the thing that GPTO like I don't want to understate the innovation in what they just launched last week. It's just the first time they've been able to bring multimodal capabilities natively into the model. And you're seeing it like you in the wild as you use co-pilot or chat GPT. You can see the power. You know it's just most people think GPT 4 came out what 15 16 months ago. But it's not been static. It has been continuously getting better and we're excited about it. So on that note you stress trust a lot in your keynote today. But there have been renewed concerns over the weekend about safety at open A.I.

More key employees have left one saying safety has taken a backseat to shiny new products. What kind of conversations have you had with

Sam Altman about this. Look I mean at least one of the fundamental things that brought open and Microsoft together way back even in 2019 was that focus on how do we make sure that we can make progress. At that time it is not even clear as to whether things will even work the way they work. Right. But even there that company was very grounded on the mission around. Hey we want to bring the benefits of this to the broader set of audience and do it safely. So and that requires at least in my mind I fall into the camp of iterative development of it. Right. You got you can't just be in the lab. You have to get it to into the real world. See the adversarial attacks make the safety harnesses better. That doesn't mean you don't take safety first as the most important feature. In fact I say even at

Microsoft which is the most important feature of Azure AI is our safety service because that's what even gives us permission to deploy anything. You can't just deploy. I mean if I take the base model like even take today's announcement it's just so important. Right.

Windows now will have 40 plus models that are going to be on board on Windows. But guess what. In order to keep them safe we will use the

 Azure AI service because we'll be learning every hour of every day. What is the new adversarial attack. And that knowledge that learning will keep all the AI models safe because the next jailbreak that happens we'll learn about it and make sure that that doesn't happen on the local model. And so that's I think the only way we're going to keep AI safe.

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Microsoft CEO Nadella on AI PC Plans, Taking on Apple, Fostering Competition

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