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I hope this spreads, diffuses throughout the world, faster than anything else, and throughout all sectors of the economy, unlike anything else. And truly, for once, there is a real shift in the frontier of that global growth that happens, where it's not about just counting winners and losers, but it's kind of like everyone gets lifted.
I hope this spreads, diffuses throughout the world, faster than anything else, and throughout all sectors of the economy, unlike anything else. And truly, for once, there is a real shift in the frontier of that global growth that happens, where it's not about just counting winners and losers, but it's kind of like everyone gets lifted.
I used to always think that alignment will just fall out. I no longer believe that. So I think this alignment thing may be a harder, different problem.
Like, by the way, you know, if I look at even what's happening inside, not just in software development, let's take silicon development. That's another thing that's going through a radical shift, right? Your ability to tape out much faster, simulate everything in silico is much better.
Is the demand as elastic as coding? I think it may be science, maybe as elastic, right? Or engineering in general.
But again, all the examples I talked about sort of, you know, in contact centers, in the supply chain systems, in these marketing slash or cash to order systems, I think that it's possible. And we're seeing it.
And people talk a lot about, you know, do you have a verifiable reward? And, you know, it's easy to do these because a lot of the magic has been RL on top of these pre-trained models. That is what, you know, has helped coding. Can we crack that in knowledge work seems much harder.
Software development is another one, right? Which is, it's fascinating to see how much the demand is elastic for software development, right? Which is, that means the IT backlogs were huge and none of us even recognized it.
I think so. And I somewhat hope so, because that is the point, right? When I look at it, let's take even as a percentage of any of our GDPs, the amount of money we spend in our healthcare, right? So that's why I look at even the deployment of co-pilot in NHS and say, wow, if it can improve patient outcomes and reduce cost in the healthcare, that is by definition, you know, helping the GDP of the United Kingdom.
No, I think the challenge, the way I see it right now is the models are becoming more and more capable, right? Scaling laws are working, except one of the assumptions I had was that you'll have alignment just fall out of scaling and it doesn't seem to be. And there's more science challenges there that need to be tackled, right? And mechanistic understanding is also elusive.
So the claim, at least I'm making, is let's create an engineered zero trust environment that can contain any malfunctioning agent before it does any harm, right? So that's the point. Because if you're really going to have agents that are more capable and yet less aligned, then you need to have a trust system that you can rely on.
So if you leave AI safety, then the trust architecture is going to be just what a company like Microsoft does or all the cyber folks do. So what we have done, for example, is we built these two things, right? Agent 365 and perception, right? What does it do? It gives every agent an identity. It then logs all of its activity, all its tool calls.
the tax revenues have gone up 12 times, the paid-in taxes have gone down by a third. The growth is higher than Seattle in Quincy. This is a rural town. They have a new school, a new hospital, a new town center, a new aquatic center.
We have our own. OpenAI is building their chip, so that's also going to be there. AMD is in there. So my thing is to run, whether it's the OpenAI models, the Anthropic models, or our own models on a heterogeneous kit.
my goal is not to have just two customers, three customers. It's great to have OpenAI being one of our largest customers. It's great that they're growing, but we need more.
we go build as much, we lease, we even rent. Right now, we're even renting quite a bit because we kind of were short on supply.
OpenAI is building their chip.
It's great to have OpenAI being one of our largest customers. It's great that they're growing, but we need more.
we're thrilled about, obviously, our investment in OpenAI, the access we have to their IP, which we have for a long time. We're going to use that.
Yeah, I think that's right. So when people say, hey, where's your foundation model? I mean, at the end of the day, we do have the IP.
I still am a big believer in college recruiting, because at the end of the day, this is going to change the curve by which anyone can pick up proficiency in a code base... the productivity curve of a college hire is going to be much steeper than it ever before. ... we are very committed.
we manage something like 500-odd fiber operators around the world in Azure today. And by the way, I had not myself realized it. A lot of it, you know, it's called DevOps, but it's a physical asset. Things get cut. And when you sort of say DevOps, that means you literally are emailing people and saying, hey, what happened to that fiber cut? How do we repair it? So there's a lot of back and forth. So this network, the person who runs our global network, basically has built to your point about thes
We are absolutely committed and focused on making the PC a great place for local models and local models that then do a lot of the prompt processing and call into the cloud.
the workstation is back. I'm one of the most excited. If you went to CES. Which is great for Microsoft, because you have a nice desktop business. Oh, absolutely.
at the end of the day, we do have the IP.
our biggest business today is Azure business. And the Azure business, the TAM, given what's going to happen is so huge that we now need to be fantastic at building these token factories.
one of the things I learned at Microsoft is whenever I did a country visit, the data I would first study is in, let's say, in the UK, or in Switzerland, or what have you, is what is the total employment created in Switzerland in our channel? That used to be, like, the number one thing in our country reports, right? And the total number... Exactly. So channel partners, ISVs, so the number of ISVs who were there. So we used to have a complete marker of how did the ecosystem around the platform get
a company like ours, I have to do everything. It's not like I can just so go live in the future. I have to make sure we're doing a fantastic job of doing hot patching on windows is done with quality, while at the same time building the evals that are improving co-pilot quality, right?
at LinkedIn, we used to have product managers, we had designers, we had front-end engineers, and then we had back-end engineers and so on. So what we did is we sort of took those first four roles and combined them, in fact, increased scope and said, let's, they're all full stack builders. So I like that because that's a structural change that allows for us to increase the change, both the work and the workflow between these functions. And so a lot of what is happening inside of tech is that chan
It's a pretty intense time. I'm glad there's the competition. It's quite honestly, at the end of the day, when I look at it, right, as a percentage of GDP, five years from now, where will tech be, right? It will be higher. So we are blessed to be in this industry. It's a lot of intense competition. But it's not so zero sum as some people make it out. High is getting much bigger, much more, the TAM and the just the impact of this tech is going to be so massive. The question then, of course, is wh
we introduced something called Agent 365 as a way to give identities.
you'll see us even in the next week, even do things, is while I'm sitting in GitHub co-pilot. It's not as if software developers sit in isolation, right? It's not like the only thing I work on is my repo. I attend meetings. I write specs or others have written specs that I'm implementing. I need to have my repo be consistent with that. So that means using either a straightforward MCP server or a skill, I want to be able to call into my work IQ, which is the co-pilot, bring that in. That's the ty
we were involved even in 2016 uh when initially open ai uh started in fact azure was even the first sponsor i think
the real strategic thing that comes together and that remains going forward is that stateless api exclusivity on azure that helps quite frankly both open ai and us and our customers uh because when somebody in the enterprise uh is trying to build an application they want an api that's stateless they want to mix it up with uh compute and storage put a database
the collective monetization reach of github copilot chat gpt microsooft 365 copilot and copilot you add those four things that is it right that's the biggest sort of ai set of products uh out there on the planet
copilot inside of uh github copilot and seeing just the code completions and seeing it work that's when i would say we i felt like i can go from one to ten because that was the big call quite frankly one was controversial uh but the one to ten was what really made this entire era possible
microsooft since 1995 was obsessed i mean bill's obsession for the company was natural language natural language i mean after all we're a coding company that's right information work company so it's when sam in 2019 started talking about text and natural language and transformers and scaling laws uh that's when i said wow like this is an interesting i mean he you know this was a team that was going in the direction or the direction of travel was now clear it had a lot more overlap with our inter
it's not a supply issue of chips it's actually uh the fact that i don't have warm shells to plug into in fact that is my problem today
we are very thrilled to be an investor and an early backer. And it's a great, and it's really a testament to what Sam and team have done
sometimes you may have to say no to some of the demand including some of the open ai demand ... they did the right thing to give them flexibility to go procure that from others while maintaining again a significant book of business from open ai
And they ran with it and just executed, you know, in a masterful way.
I mean, they obviously had the vision early about what this technology could do.
We are very thrilled to be an investor and an early backer. And it's a great, and it's really a testament to what Sam and team have done.
I think what's pretty unique about OpenAI is the fact that as part of OpenAI's process of restructuring, one of the largest nonprofit gets created.
you can see the beginnings of that with codex right the way at least i use it inside a github copilot is like you know it's now it's just a it's just a different way than the chat interface and i think that that i think would be a new way for the human computer interface
windows is a platform where things that are bigger than windows can be born like the web a platform can only serve society if its rules allow for this