Watch the video below for a discussion about Microsoft’s (NASDAQ: MSFT) strategic shift under CEO Satya Nadella, focusing on future technologies like AI compared to previous leadership. The conversation highlights Microsoft’s early AI investments, their competitive tactics in cloud computing, and speculates on the evolving valuation metrics in tech, considering the rise of AI .

 

Transcript:

So Satya, the current chairman and CEO of Microsoft, has made his career up until AI.

On this transformation, the people before him, particularly Steve Ballmer, their real interest was trying to do things like get onto smartphones, the gaming industry.

They were looking at the present and trying to see how they could dominate the present.

Satya seems to have made a decision several years ago that he wanted to dominate the future.

Well, he did. And we wrote about this at 24-7 for years where we noted that to get traction on that side of the business, they were more than willing to discount big to big clients.

And they also had big clients, which AWS did.

The only AWS natural client pool was the third party resellers who were on the Amazon site.

So they had to really go out and look for clients.

Which they acquired, but right.

I mean, Microsoft, I think, had a lot of just inbred relationships that they could immediately go to and say, look, we can compete and we will undercut these guys.

Yeah. Let’s talk about valuations for a second.

If cloud computing was really the key metric for valuation at big tech companies, is that going to very quickly disappear as AI really becomes the center of almost every story about the earnings of every major tech company?

I think it remains to be seen, but we’ve been around long enough to see that the change in the tech industry can come very fast.

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