Microsoft CEO Satya Nadella has reaffirmed artificial intelligence as central to the company’s future. In an internal memo obtained by Business Insider, Nadella urged executives to accelerate efforts and operate with greater focus, aiming to concentrate authority among AI leaders and redefine product development and funding strategies.
Nadella declared that Bill Gates’ historic “software factory” approach, while foundational to Microsoft’s past success, no longer does its work. The company's focus is now shifting from simple software development to intelligent systems and deep AI integration.
Internal Tensions and Strategic Moves
Senior executives report mounting pressure to deliver on Nadella’s AI agenda. Anonymous sources described an environment of urgency that has left long-tenured employees questioning their future at the company. Despite low reported usage of Microsoft Copilot, Nadella continues to enforce his transformation plan, offering leaders a choice to commit or exit.
To bolster this shift, Nadella appointed Judson Althoff as CEO of Microsoft’s commercial business, a move insiders describe as strategic for freeing Nadella to focus on AI advancement. He now dedicates significant time to AI-focused meetings, product reviews, and engineering discussions.
Organizational Reinforcement
Nadella launched a weekly AI accelerator meeting and a dedicated Teams channel that can be categorized as AI research, product development, and engineering sessions. Notably, junior technical fellows lead these sessions, presenting ideas directly rather than relying on executive summaries.
Rumors of imminent retirements among top leaders, including Rajesh Jha and Charlie Bell, surfaced in the report. Microsoft spokesman Frank Shaw denied any imminent changes to senior leadership.
Source: Windows Central
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