WEBVTT - Bonus Episode: Microsoft CEO Satya Nadella Talks to Bloomberg

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<v Speaker 1>Microsoft CEO Sacha and Adela who joins us now live Satcha. Obviously,

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<v Speaker 1>it's been a very fast moving and dramatic last seventy

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<v Speaker 1>two to forty eight hours, And I want to start

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<v Speaker 1>with the state of play. Where are we now? Open

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<v Speaker 1>ai says it's hired a new CEO. We're reporting their

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<v Speaker 1>efforts to get Sam Altman back. Tell us where things stand?

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<v Speaker 2>Well, first, for all, Havan, it's great to be with you.

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<v Speaker 2>You know, on Friday morning, we were very excited, committed

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<v Speaker 2>and confident in our innovation roadmap to bring this next

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<v Speaker 2>generation of AI to our customers. And we feel fantastic

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<v Speaker 2>and capable of doing that. And we were partnered with

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<v Speaker 2>open ai, and we were partnered with Sam. And that's

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<v Speaker 2>exactly where I am on Monday afternoon, if you will,

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<v Speaker 2>because we think that we can, you know, we are

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<v Speaker 2>leading in this next generation of AI technology. We continue

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<v Speaker 2>to be committed to open Ai, and we continue to

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<v Speaker 2>be committed to Sam and Greg and the team in

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<v Speaker 2>respect you where they are. And you know, I think

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<v Speaker 2>about Sam has chosen multiple times now to work with us,

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<v Speaker 2>and that's fantastic to see. And I think the real

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<v Speaker 2>thing is that the capability that Microsoft has across the

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<v Speaker 2>tech stack is what attracts great people like Sam, you know,

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<v Speaker 2>and people like Sam and you know, innovators like Sam

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<v Speaker 2>when it comes to ai to come to us, and

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<v Speaker 2>we are thrilled about it.

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<v Speaker 1>You incredibly quickly hired Sam as well as Greg. We

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<v Speaker 1>are hearing that Sam wants to return. Investors want him

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<v Speaker 1>to return to open Ai. How would you feel about that?

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<v Speaker 2>Yeah, as I said, we really want to partner with

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<v Speaker 2>open Ai and we want to partner with Sam. And

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<v Speaker 2>so in respect you where Sam is, He's working with

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<v Speaker 2>Microsoft and that is the case on Friday, and that'll

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<v Speaker 2>be that's the case today and we will I absolutely

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<v Speaker 2>believe that will be the case tomorrow.

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<v Speaker 1>So what are the conversations you've had with open AI's

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<v Speaker 1>current board from their perspective, where do things stand? And

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<v Speaker 1>have you talked with Emmett sheher the new interim CEO.

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<v Speaker 2>Yeah, I've had conversations with Emmett, and again it's the

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<v Speaker 2>same thing. There's no real difference there from where we

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<v Speaker 2>were when we were working with Mira and she was

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<v Speaker 2>interim CEO when Sam was CEO and Emmett. So my

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<v Speaker 2>message to them, Emmett is very clear, which is, Hey, look,

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<v Speaker 2>we remain very very committed to open ai and it's

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<v Speaker 2>mission and it's sort of roadmap, and they can count

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<v Speaker 2>on us. And then, as I said, we also are

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<v Speaker 2>very committed to Sam and Greg and team that want

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<v Speaker 2>to join us. If they're not at open ai or

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<v Speaker 2>anyone else who's at open ai wants to go somewhere else,

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<v Speaker 2>we want them to come to Microsoft and continue to

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<v Speaker 2>work here and win partnership with open ai.

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<v Speaker 1>To your knowledge, why was Sam fired? And to your

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<v Speaker 1>knowledge was he involved in any wrongdoing? Has the board

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<v Speaker 1>given you a reason?

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<v Speaker 2>As far as I'm concerned, You know, we were, as

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<v Speaker 2>I said, we were very confident in Salm and his

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<v Speaker 2>leadership team. I've not been told about anything you know

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<v Speaker 2>they published internally at open ai that there is not

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<v Speaker 2>that the board has not talked about anything that Sam

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<v Speaker 2>did other than some breakdown in communications. And you know,

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<v Speaker 2>I'm not directly and was told by anyone from their

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<v Speaker 2>board about any issues. And so therefore I remain confident

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<v Speaker 2>in Sam and his leadership and capability. And that's why

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<v Speaker 2>you know, we want to welcome him to Microsoft.

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<v Speaker 1>Now. We understand that to support a return of Sam

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<v Speaker 1>mom and too open Ai. Microsoft wants some changes to

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<v Speaker 1>the board, to governance to its overall contract with open ai,

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<v Speaker 1>so something like this never happens. Again, what specifically are

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<v Speaker 1>you looking for, for example, would you want to board

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<v Speaker 1>see and if not, what else?

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<v Speaker 3>Yeah, I mean I think we definitely will want some

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<v Speaker 3>governance changes.

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<v Speaker 2>So then you know, you know, surprises are bad and

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<v Speaker 2>we just want to make sure that things are done

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<v Speaker 2>in a way that will allow us.

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<v Speaker 3>To continue to partner.

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<v Speaker 2>Well that's about it, right, You know, this idea that somehow,

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<v Speaker 2>you know, suddenly changes happen without being you know, in

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<v Speaker 2>the loop is not good. And we will definitely ensure

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<v Speaker 2>that some of the changes that are needed to happen

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<v Speaker 2>and we continue to be able to go along on

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<v Speaker 2>the partnership with open Ai.

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<v Speaker 1>So how are you envisioning this role with the sort

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<v Speaker 1>of you know, advanced AI team that Sam and Greg

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<v Speaker 1>would be joining and leading. Can you explain that? And

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<v Speaker 1>are they actually Microsoft.

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<v Speaker 3>Employees right now?

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<v Speaker 1>Like who do they work for?

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<v Speaker 3>Yeah?

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<v Speaker 2>So they're all in the process of joining, and yes,

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<v Speaker 2>I mean the thing is, you know, we have a

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<v Speaker 2>ton of AI expertise in this company. You know, in fact,

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<v Speaker 2>at our IGNITE conference last week. We talked about all

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<v Speaker 2>of the great work open aiyes doing and on Azure

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<v Speaker 2>and all the models and tools that we built around it.

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<v Speaker 2>And we also talked about all the open source models

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<v Speaker 2>that are on Azure from you know, Llama and miss

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<v Speaker 2>Stral and Jazz and everything in and then also you know,

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<v Speaker 2>in fact, not only are we leaders in LLLMS in

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<v Speaker 2>partnership with open Ai, but we're also leaders in SLMs

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<v Speaker 2>or the small language models with five and we talked

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<v Speaker 2>about that, which is all developed by Microsoft Research. So

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<v Speaker 2>what we am excited about is sort of creating another

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<v Speaker 2>team that's really going to have high ambition on leading

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<v Speaker 2>edge advanced day I work that Sam and Greg are

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<v Speaker 2>excited about. This is something that you know, we've talked

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<v Speaker 2>a lot about with them. You know, what happens in

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<v Speaker 2>twenty five, what happens in thirty What do we do

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<v Speaker 2>to advance both the system side the science side.

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<v Speaker 3>And that's the thing that we will be pushing on. Now.

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<v Speaker 1>Many folks I'm speaking with don't see Sam as a

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<v Speaker 1>sort of big tech company guy. He has all of

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<v Speaker 1>these side product projects that you know we've already heard about.

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<v Speaker 1>We've reported on new projects. Would he be able to

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<v Speaker 1>pursue these side projects while being employed by Microsoft?

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<v Speaker 2>Yeah, I'm sure you know, Like you know, Sam has

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<v Speaker 2>got broad interests in broad investments and so on, and

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<v Speaker 2>we'll definitely, you know, work through the governance aspects of it.

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<v Speaker 2>But most importantly, I think you would want to only

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<v Speaker 2>work at Microsoft if he wants to spend his full

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<v Speaker 2>time time on really pursuing the mission, just like how

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<v Speaker 2>he were spending his time on Open AI. And so

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<v Speaker 2>that's kind of the idea behind having him lead this

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<v Speaker 2>advanced research team around AI with Greg and others, And

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<v Speaker 2>you know, that's an exciting thing for us to look

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<v Speaker 2>forward to.

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<v Speaker 1>I'm curious just your reaction to you know, the last

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<v Speaker 1>three days of events. Are you now more concerned than

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<v Speaker 1>ever about AI safety? Given we've seen clearly how fragile

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<v Speaker 1>these institutions are.

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<v Speaker 3>It's a great point.

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<v Speaker 2>I mean, the thing that I think, in some sense,

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<v Speaker 2>I've always felt that we should think about the unintended

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<v Speaker 2>consequences of any great advances in technology from day one,

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<v Speaker 2>versus dealing with them later. So in some sense I

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<v Speaker 2>welcome this dialogue, if you will, of safe and safety first,

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<v Speaker 2>even in technology and technological development, right. I mean that's

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<v Speaker 2>I think in some sense it should be celebrated that

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<v Speaker 2>we as a tech industry have gotten to a place

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<v Speaker 2>where we don't think of this as a trade off,

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<v Speaker 2>but we think about this as two considerations that are

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<v Speaker 2>both first class. Right. One is how do we build

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<v Speaker 2>technology so that everybody in the world can have a

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<v Speaker 2>doctor an X that they can reach, or a tutor

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<v Speaker 2>or you know, a rural farmer in India has more

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<v Speaker 2>agency because of technology that was developed in the West

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<v Speaker 2>Coast of the United States a few months earlier. These

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<v Speaker 2>are unbelievable things that democratize access on one side, but

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<v Speaker 2>on the other side, being grounded on the here and

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<v Speaker 2>now harms right, whether it's election interference or deep fakes

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<v Speaker 2>or bias or bioterrorism and having the guardrails against it

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<v Speaker 2>or even the some of the you know AI take

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<v Speaker 2>off existential risks and the alignment research that is required.

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<v Speaker 2>So I think that there is a real robust dialogue

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<v Speaker 2>that's happening, which is and real work. Like when I

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<v Speaker 2>think about Microsoft, we have done, in fact, some of

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<v Speaker 2>the biggest most work around AI alignment, AI safety guardrail.

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<v Speaker 2>So for example, even the open source models we launched

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<v Speaker 2>last week, all have benefit from all the godrail work

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<v Speaker 2>we did around open ai models.

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<v Speaker 1>So throughout the reporting process, we've heard, you know, concerns

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<v Speaker 1>about potential regulatory issues and of course the power that

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<v Speaker 1>Microsoft already has, the power that Microsoft has in Ai.

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<v Speaker 1>Have you, on your end work through all the potential

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<v Speaker 1>legal issues at play here? I mean I just spoke

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<v Speaker 1>to one investor who said, you know, they're considering suing

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<v Speaker 1>open Ai, Like, you know, there's a lot of things

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<v Speaker 1>that have yet it seems to be figured out. And

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<v Speaker 1>do you know what Microsoft's legal liability is and open

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<v Speaker 1>AI's legal liability is given your significant investment there.

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<v Speaker 2>Yeah, Look, I'm I'm most focused on and most excited

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<v Speaker 2>about our.

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<v Speaker 3>Ability to continue to innovate Emily.

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<v Speaker 2>I mean, I led the lawyers sort of figured out

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<v Speaker 2>what liabilities are. But I think we have all the capability,

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<v Speaker 2>all the IP and all the things that we need

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<v Speaker 2>in order to continue to essentially control our destiny here

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<v Speaker 2>so that we can continue to innovate on behalf of

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<v Speaker 2>our customers. That's what matters, That's what makes Microsoft Microsoft,

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<v Speaker 2>and will continue to do what we need to do.

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<v Speaker 1>Okay, so quick, last question, this is today who's going

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<v Speaker 1>to be CEO of open Ai tomorrow? You tell me.

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<v Speaker 3>I will leave it to open Ai and it's bored.

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<v Speaker 1>All right. Sach and Adella, CEO of Microsoft.

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<v Speaker 3>Thank you.

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<v Speaker 1>I know you've had a really busy few days. Appreciate

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<v Speaker 1>you taking the time to talk to us.