WEBVTT - Microsoft’s Eras With Bill Gates, Steve Ballmer and Satya Nadella 0:00:01.320 --> 0:00:03.200 I was not prepared for how cold it would be here. 0:00:04.080 --> 0:00:08.040 Hawhi girl and me is dying today. I'm on Microsoft's 0:00:08.039 --> 0:00:09.520 campus in Redmond, Washington. 0:00:10.480 --> 0:00:14.360 Ran It's so wonderful to be here with all of you. 0:00:14.560 --> 0:00:17.000 Is celebrating fifty years of Microsoft. 0:00:20.920 --> 0:00:24.680 The company just celebrated its fiftieth anniversary, and Bill Gates, 0:00:24.920 --> 0:00:28.360 Steve Balmer, and Sachiinadella, the three CEOs who've led the 0:00:28.400 --> 0:00:31.520 company over those five decades, were all there to celebrate. 0:00:31.640 --> 0:00:36.040 I wrote more code than either of these guys. 0:00:39.040 --> 0:00:42.280 In March twenty fourteen, a month after Sachiinadella took over 0:00:42.320 --> 0:00:45.479 as CEO, Steve Balmer told an audience at the Oxford 0:00:45.600 --> 0:00:49.400 Union that his main requirement when finding a successor was ambition. 0:00:50.000 --> 0:00:53.920 There's an old movie they say relationships are like sharks. 0:00:54.480 --> 0:00:58.240 They either move forward or they die. Well, I can 0:00:58.280 --> 0:01:02.080 tell you technology businesses are like sharks too. You either 0:01:02.320 --> 0:01:05.680 move forward ambitiously or poof. 0:01:07.440 --> 0:01:12.160 Microsoft's business has thrived under Sacynadella. Microsoft hire after beating 0:01:12.160 --> 0:01:13.160 on almost every metric. 0:01:13.280 --> 0:01:14.959 This is once again as you just saving the day. 0:01:15.080 --> 0:01:17.959 What a time to be a holder of Microsoft shares. 0:01:17.959 --> 0:01:20.880 A stock has just performed phenomenally. 0:01:20.560 --> 0:01:24.000 But With the emergence of AI, the company faces arguably 0:01:24.040 --> 0:01:34.520 the most transformative era in technology yet. On this week's 0:01:34.520 --> 0:01:36.840 episode of the Circuit, we had a chance to dive 0:01:36.880 --> 0:01:40.720 into the past, present, and future of Microsoft, and here 0:01:40.760 --> 0:01:43.120 on the podcast, we're sharing our interviews with the three 0:01:43.200 --> 0:01:47.119 CEOs who made the company what it is today. First up, 0:01:47.240 --> 0:02:01.360 Microsoft co founder Bill Gates. Ready, okay, Bill, Happy birthday, 0:02:01.600 --> 0:02:06.040 Thank you fifty years. You're known for your predictions. What's 0:02:06.080 --> 0:02:09.959 the most surprising thing to you about today? Like something 0:02:09.960 --> 0:02:10.960 you didn't predict? 0:02:12.040 --> 0:02:16.000 Well, I, ever since I started Microsoft, I've always thought, 0:02:16.040 --> 0:02:18.799 oh my goodness, what is it we might miss? You know, 0:02:19.360 --> 0:02:22.880 so there have been so many twists and turns in 0:02:22.919 --> 0:02:26.480 the technological road. When I was in charge, you know, 0:02:26.520 --> 0:02:28.800 I set up all night thinking, you know, we're going 0:02:28.840 --> 0:02:30.440 to miss this, We're going to miss that. The fact 0:02:30.480 --> 0:02:34.600 that we've been able to navigate this changing environment, first 0:02:34.639 --> 0:02:37.880 under my leadership, then understy Bamber's and now Undersat is 0:02:38.320 --> 0:02:41.160 kind of a miracle to me. You know, we've always 0:02:41.200 --> 0:02:44.240 had smart people. I did that software is important. We 0:02:44.240 --> 0:02:48.399 were truly right about that. But you know, here we are, 0:02:48.440 --> 0:02:50.840 and now you know, the road's got all these AI 0:02:51.000 --> 0:02:55.240 twists and turns that saught to you with a little 0:02:55.240 --> 0:02:58.959 bit of advice from Steve, and I gets to drive 0:02:59.040 --> 0:03:00.960 the car around these curves. 0:03:02.520 --> 0:03:04.560 There's been so much reminiscing on stage. We heard a 0:03:04.560 --> 0:03:07.440 lot of fun old sounds. Be honest, do you still 0:03:07.440 --> 0:03:09.440 get excited when you hear the Windows startup sound? 0:03:10.280 --> 0:03:12.880 It reminds me of a magic time. You know. 0:03:12.880 --> 0:03:15.920 It was right here on the Microsoft campus that we 0:03:16.000 --> 0:03:19.080 had that Windows ninety five introduction. You know, we had 0:03:19.160 --> 0:03:22.399 jay Leno and it was kind of maybe the time 0:03:22.440 --> 0:03:27.079 when people realized Microsoft was quite a unique company. That 0:03:28.160 --> 0:03:31.480 office had come together, the graphics, c inerface had come together, 0:03:32.000 --> 0:03:34.680 you know, on all the different systems, whether it was Apple, 0:03:34.760 --> 0:03:38.520 Macintosh or Windows on the PC, we were providing the 0:03:39.800 --> 0:03:44.920 top application. So that was definitely a fun day that 0:03:45.800 --> 0:03:46.960 showed that we. 0:03:48.480 --> 0:03:49.880 Had some special sauce. 0:03:50.200 --> 0:03:51.680 So it's nineteen seventy five. 0:03:52.200 --> 0:03:54.960 What's going on inside Bill's bring, Like, did you and 0:03:55.000 --> 0:03:58.320 Paul think you had something this big in your hands? 0:03:58.480 --> 0:04:01.880 Well, we knew that software would be important, you know, 0:04:01.880 --> 0:04:05.000 we said when people thought it was crazy, a computer 0:04:05.840 --> 0:04:07.800 on every desk and in every home, and so we 0:04:07.840 --> 0:04:12.680 saw this tool of empowerment We're always worried that once 0:04:12.720 --> 0:04:18.200 somebody realized what we realized, that they might you know, 0:04:18.320 --> 0:04:20.160 do a good job as well. So, you know, why 0:04:20.160 --> 0:04:23.480 didn't IBM, who had all the capital in the world 0:04:23.640 --> 0:04:26.200 and great people, why couldn't they do what we did? 0:04:26.279 --> 0:04:29.599 And we thought, well, we're more dedicated to software. We're 0:04:29.600 --> 0:04:33.920 going to hire you know, energetic people, We're going to 0:04:33.960 --> 0:04:36.960 price this stuff super super low and make it available 0:04:37.000 --> 0:04:41.640 to everyone. But we were you know, humble about how 0:04:41.760 --> 0:04:45.200 unique we would be, knowing though that software and software 0:04:45.240 --> 0:04:49.080 empowerment was the coolest thing going on, and even today, 0:04:49.120 --> 0:04:52.240 if you look at you know, which companies are valuable, 0:04:53.279 --> 0:04:56.360 it's really the ones that have ridden that digital software 0:04:56.400 --> 0:05:01.719 empowerment wave. So our vision really was as true as 0:05:01.760 --> 0:05:02.719 we could have dreamed. 0:05:02.880 --> 0:05:05.839 What was the scariest this might not work moment along 0:05:05.839 --> 0:05:06.359 the way. 0:05:06.640 --> 0:05:10.440 Well, there were times in our relationship with IBM that 0:05:11.000 --> 0:05:15.200 were very complicated, Very early on in the history of 0:05:15.240 --> 0:05:17.800 the company, which I talked about in source Code. We 0:05:17.839 --> 0:05:20.280 had a dispute with our customer. They weren't pain us, 0:05:21.480 --> 0:05:25.000 and so you know, thereafter I said, I'm going to 0:05:25.040 --> 0:05:27.800 have enough money in the bank to pay everyone salary 0:05:27.839 --> 0:05:29.880 for a year, even if nobody pays me anything. So 0:05:29.920 --> 0:05:33.599 I was very conservative financially, and you know, we're lucky 0:05:33.680 --> 0:05:38.040 that software business until it comes to these cloud days. 0:05:38.480 --> 0:05:40.760 It wasn't a very capital intensive business. 0:05:40.920 --> 0:05:42.479 Wasn't there a point where you couldn't pay for the 0:05:42.560 --> 0:05:45.280 chairs and they were literally pulling the chairs out from underneath. 0:05:45.560 --> 0:05:49.719 That's okay, that's even before Microsoft. That's when I was 0:05:49.760 --> 0:05:52.960 in high school. We were always trying to find computers. 0:05:52.960 --> 0:05:57.719 And the company that was here in Seattle using a 0:05:57.760 --> 0:06:02.120 great computer, had a deal that if we could find bugs, 0:06:02.320 --> 0:06:05.840 they wouldn't have to pay for their computer. Unfortunately, they 0:06:05.839 --> 0:06:08.440 didn't find enough customers, so they went bankrupt. And so 0:06:08.480 --> 0:06:12.719 we saw, you know that even great companies like Winging Computer, 0:06:12.800 --> 0:06:16.240 which was incredible, you know, disappeared. We actually had that 0:06:16.400 --> 0:06:20.320 sense of, okay, you've got to be very careful in 0:06:20.440 --> 0:06:22.719 order to survive ups and downs. 0:06:22.920 --> 0:06:26.000 I'd love to hear how you reflect on Microsoft era's 0:06:26.279 --> 0:06:29.320 Taylor Swift style. So humor me, what would be the 0:06:29.440 --> 0:06:31.960 chapter of each what would be the title of each 0:06:32.040 --> 0:06:34.960 chapter or era, and what was a lesson that you 0:06:35.040 --> 0:06:35.960 learned in each? 0:06:37.000 --> 0:06:40.800 Well, there's the early what i'll call eight bit computers. 0:06:41.040 --> 0:06:45.200 Where it went to where you know today people probably 0:06:45.200 --> 0:06:50.480 remember the Apple two, the TRSAD, the Commodore pat. Those 0:06:50.520 --> 0:06:54.120 were the first computers that sold literally in the millions, 0:06:54.600 --> 0:06:57.640 and all of them included Microsoft basics. So the reason 0:06:57.640 --> 0:07:00.000 you could write a program try things out was because 0:07:00.000 --> 0:07:03.760 because we'd worked with each of those companies. Then the 0:07:03.800 --> 0:07:08.480 IBM PC comes along, and we work with IBM and 0:07:08.520 --> 0:07:12.080 do all the software for that, including the operating system. 0:07:13.240 --> 0:07:17.960 The power is stepped up, and you know, so the 0:07:18.040 --> 0:07:22.040 applications are more demanding. You start to have big discs, 0:07:22.080 --> 0:07:26.400 hard disks. Then we get to the graphics interface era, 0:07:27.080 --> 0:07:30.000 and this is where Windows and the Macintosh come in 0:07:30.440 --> 0:07:32.760 and your interface instead of just being a bunch of characters, 0:07:32.760 --> 0:07:35.840 you get the mouse, you get whatever you want. That's 0:07:35.880 --> 0:07:39.240 where Windows ninety five and Office ninety five come in, 0:07:39.320 --> 0:07:45.480 and that is an incredible period. Then the Internet phase 0:07:45.560 --> 0:07:51.040 starts and people are like, okay, does Microsoft get the 0:07:51.080 --> 0:07:54.080 browser and the Internet and all these things? And we 0:07:54.240 --> 0:07:58.800 managed to show that we did. Then after that, I'd say, 0:07:59.400 --> 0:08:06.200 you know, the cloud computing peace becomes very big. 0:08:06.880 --> 0:08:07.240 Uh. 0:08:07.320 --> 0:08:10.360 You know, Amazon does a very good job with that. 0:08:10.480 --> 0:08:14.520 At the start, Microsoft comes in with Azure. You know 0:08:14.520 --> 0:08:17.360 and now here we are at the beginnings of the 0:08:17.400 --> 0:08:18.120 AI era. 0:08:18.680 --> 0:08:21.320 I understand that you spent a lot of time succession 0:08:21.640 --> 0:08:26.640 planning and passing the rains, planning to pass the rains. 0:08:26.960 --> 0:08:30.240 What's the key to building a company that outlast its founder. 0:08:30.920 --> 0:08:34.720 Well, we're very lucky that, you know, Steve worked with 0:08:34.800 --> 0:08:39.839 me for a long time, and so when he took over, 0:08:40.559 --> 0:08:44.319 I stayed for eight years as chief technical officer. 0:08:45.120 --> 0:08:45.640 Uh. 0:08:45.720 --> 0:08:49.960 And he did an incredible job nurturing a lot of 0:08:50.040 --> 0:08:52.920 candidates you know, sought to emerge. Is the clear choice. 0:08:52.960 --> 0:08:55.840 Both Steve and I were very clear that he was 0:08:55.880 --> 0:09:00.480 the right person. He very much stood out uh. Uh, 0:09:00.520 --> 0:09:05.080 and he's actually exceeded our expectations. Now he gets to 0:09:05.160 --> 0:09:09.200 pick the fourth CEO. He's got an incredible team of 0:09:09.280 --> 0:09:12.679 people that, you know, help him do the job. It's 0:09:12.679 --> 0:09:14.960 a much more complex job today. I have to say, 0:09:14.960 --> 0:09:20.000 I'm in great admiration uh for how zen he is that, 0:09:20.440 --> 0:09:22.720 you know, picking the things he's going to focus on 0:09:22.840 --> 0:09:26.079 and all the you know, uh choices. 0:09:26.520 --> 0:09:27.000 Uh. 0:09:27.120 --> 0:09:29.439 He's very good about drawing both Steve and I in, 0:09:29.960 --> 0:09:34.520 you know, so whatever expertise we have, uh, he gets 0:09:34.720 --> 0:09:38.319 the benefit of that, you know. So I think he's 0:09:38.400 --> 0:09:40.640 kind of a model. He's he's do He wasn't there 0:09:40.679 --> 0:09:45.520 in the early days, and yet you know, of all 0:09:45.559 --> 0:09:48.280 the tech companies, I think he's he's been the best 0:09:48.280 --> 0:09:51.600 at caring Ford. Even the original spirit of what made 0:09:51.679 --> 0:09:52.760 Microsoft special. 0:09:53.240 --> 0:09:55.760 Looking back, it wasn't always easy. I mean Microsoft went 0:09:55.840 --> 0:09:58.480 through some tough times. You went through some tough times, 0:09:58.480 --> 0:10:02.440 You were criticized for your aggressive business tactics and being 0:10:02.440 --> 0:10:03.400 anti competitive. 0:10:03.679 --> 0:10:05.600 How do you reflect on that period? 0:10:06.200 --> 0:10:11.280 Well, we were so successful and one of the great 0:10:11.360 --> 0:10:14.960 rewards if you're you know that successful, is the government 0:10:15.000 --> 0:10:17.560 comes in and says, okay, you know, do they have 0:10:17.640 --> 0:10:19.760 to do things to help out your competitors? 0:10:19.800 --> 0:10:22.120 Did you follow all those rules? So yes. 0:10:23.120 --> 0:10:27.439 At that same time as the Internet error was coming 0:10:27.480 --> 0:10:33.880 along in the nineties, we were involved in a US 0:10:34.000 --> 0:10:36.920 government lawsuit and I put a lot of time into that. 0:10:38.120 --> 0:10:41.040 Originally Bill Nucum was our top layer. Then Brad Smith 0:10:41.080 --> 0:10:45.920 came along, and you know, those weren't ec days. It's 0:10:45.920 --> 0:10:48.439 pretty amazing. There was never any period where we were 0:10:48.480 --> 0:10:52.000 losing money. You know, Microsoft, We've never had a year 0:10:52.080 --> 0:10:56.920 where we lost money. And so the financial strength because 0:10:56.960 --> 0:10:59.040 we were so right about software and we were so 0:10:59.080 --> 0:11:03.680 good about building up globally that we had the problem 0:11:03.679 --> 0:11:05.720 you could says sort of, you know, kind of a 0:11:05.920 --> 0:11:08.920 problem of hyper success, and we were able to work 0:11:08.960 --> 0:11:11.679 a settlement out with the government, and you know, we've 0:11:11.720 --> 0:11:14.080 been a lot more aware of Okay, let's constantly be 0:11:14.200 --> 0:11:16.959 in touch with the governments around the world, make sure 0:11:16.960 --> 0:11:20.400 they're good with what we're doing. And so we haven't 0:11:20.480 --> 0:11:24.520 had anything intense like we did there in the late nineties. 0:11:25.160 --> 0:11:27.760 You've seen how text form factor has changed over the 0:11:27.840 --> 0:11:32.439 years as technology has progressed from the PC to laptops 0:11:32.480 --> 0:11:37.319 to phones. How do you see AI transforming software and 0:11:37.360 --> 0:11:39.600 what will be the ultimate form factor? 0:11:40.600 --> 0:11:42.440 Well, in a way, you won't even think about the 0:11:42.440 --> 0:11:45.400 form factor. I mean, you'll certainly have something in your ear, 0:11:45.960 --> 0:11:48.480 you know, you'll have something in your glasses. All the 0:11:48.520 --> 0:11:51.960 different wall surfaces will be able to light up as displays, 0:11:52.080 --> 0:11:53.920 you know, wherever you are, and we'll see, okay, there's 0:11:53.920 --> 0:11:56.600 a display over there. I can put the information there 0:11:56.640 --> 0:11:59.160 for you, so it'll be a bit more disembodied that 0:11:59.240 --> 0:12:02.960 your agent will interact with you just voice to voice 0:12:03.240 --> 0:12:05.400 as you're walking down the street, or you can pull 0:12:05.400 --> 0:12:11.079 out a phone size screen uh, you know, have projections 0:12:10.800 --> 0:12:14.520 onto the glasses and so the hardware piece. 0:12:14.520 --> 0:12:15.960 Will just kind of be seamless. 0:12:15.960 --> 0:12:18.120 But the software has got to work on every one 0:12:18.160 --> 0:12:20.400 of those form factors. You're not going to have one 0:12:20.480 --> 0:12:23.160 agent on the phone another one on your PC. It'll 0:12:23.280 --> 0:12:27.679 be holistic because it'll know you your preferences. You'll trust it 0:12:27.760 --> 0:12:31.439 to help do things for you. 0:12:31.880 --> 0:12:33.920 How will the AI wars play out? 0:12:34.000 --> 0:12:36.120 Like does it feel different than the mobile or the 0:12:36.120 --> 0:12:37.000 browser wars? 0:12:37.600 --> 0:12:38.440 Like who wins? 0:12:39.000 --> 0:12:40.280 We well, we don't know. 0:12:41.320 --> 0:12:46.040 We know that the level of investment by the leading 0:12:46.080 --> 0:12:51.360 companies is pretty mind blowing. You know, Google's a great company, 0:12:53.040 --> 0:12:58.760 Microsoft Open Ai, you know we're out there, you know 0:12:58.880 --> 0:13:02.600 every day, you know, making Copilot better, and we saw 0:13:02.640 --> 0:13:06.479 a lot of great demos of you know how that's evolving. 0:13:06.600 --> 0:13:10.160 I do a lot of product reviews with Mustafa and 0:13:10.200 --> 0:13:14.680 the other key Microsoft engineering leads. You give them my 0:13:14.760 --> 0:13:18.679 advice on trying to make Copilot be the best it 0:13:18.679 --> 0:13:19.040 can be. 0:13:19.480 --> 0:13:21.840 You joked on stage that Copilot might be the CEO 0:13:22.160 --> 0:13:26.400 in fifty years. But more seriously, you've said that the 0:13:26.440 --> 0:13:29.560 age of complete human dominance will be over in ten years. 0:13:30.360 --> 0:13:31.439 What does that really. 0:13:31.200 --> 0:13:32.040 Mean for us? 0:13:32.840 --> 0:13:37.200 Well, what it means goes beyond you know which company 0:13:37.280 --> 0:13:40.319 actually delivers that or what their stock price is. It's 0:13:40.360 --> 0:13:44.360 a much more profound thing than just like the Browser Wars, 0:13:44.400 --> 0:13:47.120 where I mean it didn't matter to people really who 0:13:47.120 --> 0:13:54.600 won the Browser Wars. Here, the capacity, the intelligence will 0:13:54.600 --> 0:13:57.199 give humans a lot of choices. You know, we won't 0:13:57.200 --> 0:14:01.319 have a shortage of mental health therapists or people who 0:14:01.320 --> 0:14:02.880 can help us plan things, and. 0:14:02.800 --> 0:14:04.720 So it'll three up a lot of time. 0:14:05.840 --> 0:14:08.080 It'll give us ways of being educated that we've never 0:14:08.120 --> 0:14:14.280 had before. I in my Foundation work are thrilled that 0:14:14.480 --> 0:14:18.679 in places where you don't have as many teachers available, 0:14:18.720 --> 0:14:23.200 you don't have doctors available, that we'll make sure that 0:14:23.280 --> 0:14:28.120 the brilliant work here gets out to even the lowest 0:14:28.160 --> 0:14:31.600 income countries at about the same time it's getting out 0:14:31.680 --> 0:14:35.240 to the very, very rich countries. And so my work 0:14:35.440 --> 0:14:38.680 for Microsoft helps me inform how the Foundation can play 0:14:38.760 --> 0:14:39.600 its unique role. 0:14:40.120 --> 0:14:43.080 You release some of the original code for Microsoft, and 0:14:43.120 --> 0:14:46.720 I'm so curious how you think about what should kids 0:14:46.800 --> 0:14:48.080 be studying these days? 0:14:48.240 --> 0:14:50.480 Like should kids still be learning how to code? 0:14:50.720 --> 0:14:53.400 Or is this the beginning of the end of programming 0:14:53.520 --> 0:14:54.200 as we know it? 0:14:55.080 --> 0:14:59.280 Well, you always want to understand the underlying things. You know, 0:14:59.360 --> 0:15:03.240 like mathematics is important even though the computers you can 0:15:03.280 --> 0:15:07.360 do the multiplications faster than you can. You know, for 0:15:07.400 --> 0:15:11.120 anybody who's interested understanding AI and how it works, you know, 0:15:11.200 --> 0:15:14.200 I think there's great value in seeing, Okay, whatever it's shortcomings, 0:15:14.200 --> 0:15:16.800 what do we still need to do even to be 0:15:16.960 --> 0:15:19.040 very good at using AI as a tool the same 0:15:19.080 --> 0:15:21.640 way that you know, Microsoft Office became sort of a 0:15:21.720 --> 0:15:26.160 basic set of skills. Now working with these AI agents, 0:15:26.200 --> 0:15:32.440 including Copilot, is you know, how you can actually organize 0:15:32.440 --> 0:15:35.720 your learning, advance your learning, and think, okay, this is 0:15:35.720 --> 0:15:38.960 how I would use this in the job I'm going 0:15:39.040 --> 0:15:39.280 to have. 0:15:39.640 --> 0:15:42.120 So what's going to be the IT job of the future. 0:15:42.520 --> 0:15:44.800 If it was a software programmer in your era. 0:15:44.840 --> 0:15:47.600 Well, I'm not sure there's any IT job. I mean, 0:15:47.840 --> 0:15:51.600 you don't want somebody If you love math and software, great, 0:15:51.680 --> 0:15:53.960 go be a software programmer. But that was you know, 0:15:54.040 --> 0:15:57.000 the percentage of the labor market that was, you know, 0:15:57.440 --> 0:16:01.720 nerding people like me. You know, where you'd be writing code, 0:16:02.000 --> 0:16:04.640 you know, is pretty modest. If you love that, great, 0:16:05.040 --> 0:16:07.440 you know, you're always the thing that you like, whether 0:16:07.480 --> 0:16:10.720 it's you know, being artistic or being a great communicator, 0:16:10.840 --> 0:16:14.920 or you know, understanding you know how people get sick 0:16:14.960 --> 0:16:20.960 and counseling them. That all about those capabilities where you 0:16:21.040 --> 0:16:23.160 bring it as a human I think will still be 0:16:23.320 --> 0:16:27.800 fairly important. But it is a period where answering these 0:16:27.880 --> 0:16:33.400 questions is probably harder than at any time in history. 0:16:34.200 --> 0:16:36.200 Humor me for a moment about you know, what's going 0:16:36.240 --> 0:16:40.400 on in the in the broader world right now, President Trump? 0:16:41.360 --> 0:16:45.280 These new tariffs doge? Is he going to be good. 0:16:45.240 --> 0:16:49.760 For the economy, good for innovation? And how do you 0:16:49.800 --> 0:16:52.360 think this moment will go down in American history? 0:16:53.680 --> 0:16:56.320 Well, there's you know a lot of things are being changed. 0:16:57.760 --> 0:17:00.360 You know, I think the willingness to look at some 0:17:00.480 --> 0:17:03.480 government things and say they should change. You know, there's 0:17:03.520 --> 0:17:06.840 nothing wrong with that, but you know, being careful about Okay, 0:17:06.920 --> 0:17:09.280 let's change the things we should and preserve some of 0:17:09.320 --> 0:17:12.600 the things that are good. And you know, my full 0:17:12.640 --> 0:17:14.800 time work is the Gates Foundation, and there I'm in 0:17:14.840 --> 0:17:18.560 a constant dialogue with the administration about Okay, how are 0:17:18.600 --> 0:17:22.040 they reshaping their aid programs? You know, are they willing 0:17:22.080 --> 0:17:24.600 to preserve some significant portion of those? 0:17:25.680 --> 0:17:27.280 You know? And I think we'll figure that out. 0:17:27.359 --> 0:17:30.680 I think the US wants to be helpful to everyone 0:17:30.720 --> 0:17:32.520 in the world to help save lives. 0:17:32.720 --> 0:17:33.880 You know, we have a history. 0:17:34.760 --> 0:17:37.720 Actually, President Bush started a program that saved tens of 0:17:37.720 --> 0:17:41.600 millions of lives in the US, has helped buy vaccines 0:17:41.640 --> 0:17:44.560 for children, and so that's where I have my deep 0:17:44.600 --> 0:17:47.480 involvement because I put my money into those things, and 0:17:47.880 --> 0:17:51.640 the US government, you know, has always been a fantastic partner. 0:17:51.880 --> 0:17:55.800 How confident are you that AI's promise will outweigh the perils. 0:17:57.359 --> 0:18:01.520 I'm not confident, but the you know, that's that's what 0:18:01.560 --> 0:18:03.439 we need to get oriented around. That's why I was 0:18:03.480 --> 0:18:06.600 surprised to I wasn't really an issue in the last election. 0:18:06.960 --> 0:18:10.600 It's definitely got to be shaped, you know. Mastafa Suliman 0:18:11.119 --> 0:18:13.800 has a book that warns of some of the challenges 0:18:13.880 --> 0:18:17.440 called The Coming Age. Read Hoffmann, a Microsoft board member, 0:18:17.480 --> 0:18:20.159 has a book Superagency, that talks about some of the promise. 0:18:20.600 --> 0:18:23.040 I'd say both of those are worth reading because they're 0:18:23.080 --> 0:18:26.200 both right. It's very promising, but it will bring new 0:18:26.280 --> 0:18:27.680 challenges along with it. 0:18:28.640 --> 0:18:32.200 So you know, all of that considered, what in your mind, 0:18:32.280 --> 0:18:37.119 what is Microsoft in fifty more years? Like, will Microsoft 0:18:37.200 --> 0:18:38.119 change the world again. 0:18:39.080 --> 0:18:41.960 Well, we're in the process of change in the world again. 0:18:42.119 --> 0:18:46.119 Just you know, the way that customers today are able 0:18:46.160 --> 0:18:50.000 to automate things, the way that you know all these tools, 0:18:50.200 --> 0:18:54.960 and you know Microsoft's putting out eighty billion dollars of investment. 0:18:55.080 --> 0:18:58.040 You know, clearly that's the sense that, Wow, we have 0:18:58.119 --> 0:19:00.280 something that customers are going to want or we'll to 0:19:00.320 --> 0:19:03.600 invest at a level that's completely unheard of. I mean, 0:19:03.600 --> 0:19:05.840 that's it's a pretty mind blowing number. 0:19:06.200 --> 0:19:08.840 It's I mean, you're famous for your predictions. Hearing you 0:19:08.880 --> 0:19:11.000 say you're not confident is kind of scary. 0:19:11.520 --> 0:19:15.960 Oh, people should think through how is AI going to 0:19:16.040 --> 0:19:18.200 reshape our lives? 0:19:18.400 --> 0:19:18.800 It is. 0:19:19.320 --> 0:19:25.159 It is a profound change agent. And uh, you know, 0:19:25.200 --> 0:19:27.320 I don't think it should just be the people who 0:19:27.320 --> 0:19:30.440 know the technology, because there's a lot of choices about 0:19:30.760 --> 0:19:33.640 how it gets used. It will change learning, it will 0:19:33.720 --> 0:19:37.159 change the job market, and you know, I think we 0:19:37.200 --> 0:19:38.159 can shape that in. 0:19:38.600 --> 0:19:39.240 The right way. 0:19:39.280 --> 0:19:45.440 But it'll be you know, just like nuclear energy, nuclear weapons, it'll. 0:19:46.880 --> 0:19:47.560 Challenge us. 0:19:47.760 --> 0:19:50.080 Bill Gates, thank you so much for doing this. On 0:19:50.119 --> 0:19:55.359 that optimistic note, here's to another fifty years. Congratulations, Thank you, 0:19:55.640 --> 0:20:06.800 Thank you, Bill. After the break Steve Balmer and now 0:20:06.960 --> 0:20:15.600 my extended conversation with former Microsoft CEO Steve Balmer. So, Steve, 0:20:16.840 --> 0:20:19.159 you brought it on stage, but at your twenty fifth 0:20:19.240 --> 0:20:21.359 anniversary you jumped out of a cake. 0:20:22.359 --> 0:20:23.480 I want to do over. 0:20:24.600 --> 0:20:25.919 I didn't even remember that. 0:20:27.040 --> 0:20:28.480 I'm not. 0:20:30.119 --> 0:20:32.239 How did it feel to be all back together for 0:20:32.280 --> 0:20:33.439 the first time in a while. 0:20:34.800 --> 0:20:36.600 It felt good, It felt really good. 0:20:36.640 --> 0:20:37.639 Actually, you know, it. 0:20:39.480 --> 0:20:42.760 Wasn't just being together, but it was in a particular setting, 0:20:43.840 --> 0:20:48.040 a little reminiscing, but a lot of future Because for Bill, 0:20:48.160 --> 0:20:52.560 for me and Forsatya, it is great to reminisce, but 0:20:53.480 --> 0:20:56.239 we're always thinking about, Okay, what happens tomorrow, what's going 0:20:56.280 --> 0:20:59.159 to happen tomorrow? Will the company keep going? And we 0:20:59.200 --> 0:21:01.399 had a chance not only to do a little reminiscing, 0:21:01.440 --> 0:21:03.040 but at least amongst the three of us had a 0:21:03.080 --> 0:21:03.920 little on stage. 0:21:04.000 --> 0:21:06.439 I understand that that Bill spent a lot of time 0:21:06.760 --> 0:21:08.879 succession planning when he handed the rings to you, and 0:21:08.920 --> 0:21:11.200 that you also spent a lot of time succession planning 0:21:11.200 --> 0:21:14.280 when you pass the rings to Satya. What's the key 0:21:14.359 --> 0:21:18.199 to building a company that outlasts its founder? You know, 0:21:18.320 --> 0:21:22.440 talk to me about how deliberate you were about that process. 0:21:22.440 --> 0:21:28.600 Well, you know, kind of super deliberate at my level. No, 0:21:28.680 --> 0:21:30.360 I didn't found the company. 0:21:30.920 --> 0:21:34.399 But fear like the heart of the company, but just about. 0:21:34.200 --> 0:21:36.600 I mean, there were only thirty people when I joined. 0:21:37.160 --> 0:21:39.359 I had a chance to shape the whole culture of 0:21:39.400 --> 0:21:43.679 the place when it was small, and so in a sense, 0:21:44.240 --> 0:21:49.360 I think Satya takes that burden of being the first 0:21:50.400 --> 0:21:55.600 completely separate, and I think he's done a fantastic job. 0:21:55.640 --> 0:22:00.240 And I will say put he having him available to 0:22:00.720 --> 0:22:03.520 take the job and doing such a good job, that's 0:22:03.600 --> 0:22:08.240 kind of accomplishment one the company. Everything three times is big. 0:22:08.600 --> 0:22:11.440 Revenue three times is big. Profit is three market caps 0:22:11.480 --> 0:22:13.600 more than three times, it's big. All good by me. 0:22:14.720 --> 0:22:16.680 I was joking with Sachi. He was talking about their 0:22:16.840 --> 0:22:20.400 kind of executive retreat whatever. They got about three times 0:22:20.440 --> 0:22:22.840 as many people at that than we had when I left. 0:22:23.080 --> 0:22:27.320 So you know, everything is scaled so much. It's amazing. 0:22:27.880 --> 0:22:31.440 And it's because you know, if you look at Sachi's career, 0:22:31.840 --> 0:22:35.159 we're actually pretty deliberate about getting him. You know, it 0:22:35.200 --> 0:22:38.440 was clear early how talent he was. So if you 0:22:38.480 --> 0:22:40.560 look at the number of areas in which he worked, 0:22:41.040 --> 0:22:43.639 he worked in our search business, he worked in the 0:22:43.960 --> 0:22:48.080 business applications area, he worked in servant tools, and so 0:22:48.119 --> 0:22:53.040 it's experience culture, and if Microsoft's going to be here 0:22:53.680 --> 0:22:57.720 even in ten or fifteen years, it'll be innovation serving 0:22:57.760 --> 0:22:59.440 customers culture. 0:23:00.640 --> 0:23:02.920 It wasn't always easy between you and Bill. You've talked 0:23:02.920 --> 0:23:05.040 about the times you didn't speak to each other, like 0:23:05.800 --> 0:23:08.119 what happened and what did you learn from that? 0:23:08.920 --> 0:23:12.040 Well, I think it's let me put it this way, 0:23:12.560 --> 0:23:16.840 the day I walked out and retired was the day 0:23:16.880 --> 0:23:19.800 I retired. I think I went to one more board 0:23:19.840 --> 0:23:22.760 meeting after that, but it was super important to let 0:23:23.040 --> 0:23:26.080 Satchya have his space. And I think that was a 0:23:26.160 --> 0:23:28.679 key learning because when Bill and I we sort of 0:23:28.720 --> 0:23:33.159 had a long handoff. I was CEO in two thousand 0:23:33.280 --> 0:23:36.159 and then he announced in oh four he's going to 0:23:36.280 --> 0:23:39.600 leave completely, but that wasn't until eight and so in 0:23:39.640 --> 0:23:45.119 a sense, the long goodbye, I think is difficult because 0:23:45.280 --> 0:23:50.040 role reversal is difficult. And I think i'd learned that 0:23:50.320 --> 0:23:55.240 enough to say, look, I love you. I might think 0:23:55.280 --> 0:23:57.639 I have a lot you can learn from me. And 0:23:57.680 --> 0:23:59.600 I said to him, but don't listen to old CEOs, 0:24:00.280 --> 0:24:03.080 former CEOs or former CEOs. You're going to know what 0:24:03.160 --> 0:24:05.800 to do, and anything you don't know, you're going to 0:24:05.840 --> 0:24:09.840 figure out. And you know, you'll call or I'll call 0:24:09.920 --> 0:24:14.480 and we'll brainstorm something. But he's the expert, and all 0:24:14.520 --> 0:24:17.800 I'm doing is sort of throwing in ideas that you know, 0:24:17.800 --> 0:24:19.840 I'm a relatively smart guy. I know a little bit. 0:24:21.080 --> 0:24:23.800 But ultimately he's got to assemble all of this stuff. 0:24:23.840 --> 0:24:27.439 And I think getting a little separation was good, and 0:24:27.480 --> 0:24:30.760 I learned that from the more difficult separation of eight 0:24:30.840 --> 0:24:32.600 years that Bill and I had. I mean, it wasn't 0:24:32.600 --> 0:24:35.000 difficult in all eight years, but you know, it made 0:24:35.040 --> 0:24:35.520 it harder. 0:24:35.560 --> 0:24:38.960 I think, you know I miss bomber style product launches. 0:24:39.800 --> 0:24:41.560 You have to miss it. Do you miss it? 0:24:42.119 --> 0:24:45.639 Well, I just did a big product launch. It's called 0:24:45.840 --> 0:24:48.480 Into It Dome our new stadium. No, seriously, it was 0:24:48.520 --> 0:24:51.120 like a product launch we weren't on in this case. 0:24:51.160 --> 0:24:54.320 We worked on the thing for nine years. I put blood, 0:24:54.320 --> 0:24:58.280 sweat and tears in it, every detail that product, and 0:24:58.320 --> 0:25:02.760 we launched it. Now get won every nine years, so 0:25:03.680 --> 0:25:06.200 well not now now, hopefully it's fifty years from now. 0:25:06.400 --> 0:25:10.200 So in a sense, yeah, it's fun. It is fun 0:25:10.240 --> 0:25:12.520 to say we've done this great thing. 0:25:12.760 --> 0:25:15.640 Please take a look at it, and we love it, 0:25:15.760 --> 0:25:19.040 and wow, look at how it does this, this and this, 0:25:19.160 --> 0:25:22.360 and you can be enthusiastic about it and it's fun 0:25:22.359 --> 0:25:24.639 to actually then take the next step to bring it 0:25:24.720 --> 0:25:26.080 to customers. 0:25:25.720 --> 0:25:27.800 And see what they really think, not just what they 0:25:28.640 --> 0:25:30.000 applaud when you launch it. 0:25:30.280 --> 0:25:32.000 Do you think do you think Tack's too serious? 0:25:32.040 --> 0:25:32.240 Now? 0:25:32.280 --> 0:25:33.919 I mean in there, I was like, man, I miss this, 0:25:34.680 --> 0:25:37.520 you know, I don't really have a feel for that. 0:25:39.440 --> 0:25:42.360 I think, you know, I always thought, Okay, you're gonna 0:25:42.359 --> 0:25:46.040 have fewer characters, you know, Bell Gates a character larger 0:25:46.080 --> 0:25:50.760 than life, or Larry Ellison a character larger than life. 0:25:50.800 --> 0:25:53.840 Steve Jobs obviously, and yet I think there's still some 0:25:53.960 --> 0:25:59.639 characters Sam altonon and other characters I eat, big, larger 0:25:59.640 --> 0:26:02.760 than life personalities. So, in a sense, is it too serious? 0:26:03.840 --> 0:26:06.120 I don't know that. I would say that the AI 0:26:06.240 --> 0:26:09.119 thing is tricky because if you don't seem serious enough, 0:26:09.600 --> 0:26:12.679 then people won't trust you with the privacy. You know, 0:26:12.800 --> 0:26:17.119 the issues that AI generates uniquely. So I see a 0:26:17.200 --> 0:26:19.320 little bit less of the hey, let's. 0:26:19.080 --> 0:26:19.720 Do the Yeah. 0:26:19.760 --> 0:26:22.800 The big joke or thing is it's just tougher with 0:26:22.880 --> 0:26:24.000 these kinds of products. 0:26:24.080 --> 0:26:30.120 Well, speaking of characters, developers, developers, developers developers. 0:26:29.920 --> 0:26:33.840 But is AI going to make engineers obsolete? 0:26:35.119 --> 0:26:39.600 AI is going to vastly change the way software gets built. 0:26:40.119 --> 0:26:42.439 It will, and yet there's still going to be people 0:26:42.560 --> 0:26:47.040 who have to figure out what the world needs how 0:26:47.040 --> 0:26:49.920 to give it to them. They may do different skills, 0:26:49.960 --> 0:26:53.040 they may do things in different ways. But the notion 0:26:53.200 --> 0:26:57.639 that there are people who are generating great ideas, maybe 0:26:57.680 --> 0:27:01.320 great ideas that they get helped to generate by the 0:27:01.400 --> 0:27:05.560 AI itself, I think that's important. Now, will all of 0:27:05.600 --> 0:27:10.359 the code crunching activities of yesterday be around tomorrow? No, 0:27:10.560 --> 0:27:13.359 A lot of those will go away. But I'm an optimist. 0:27:13.680 --> 0:27:16.320 People say, oh, you know, are you going to put 0:27:16.359 --> 0:27:19.119 people out of and this happened every time. You know, 0:27:19.160 --> 0:27:21.879 Will this cause a loss of jobs? Will that costs 0:27:21.960 --> 0:27:24.920 a lot of jobs? You know what I'd say? Somehow, 0:27:24.920 --> 0:27:28.240 the world's always created new jobs. It can be hard 0:27:28.320 --> 0:27:31.560 the dislocation. People say, oh, shoot, it's my skills it 0:27:31.560 --> 0:27:35.679 became obsolete, But there will be new important skills people 0:27:36.040 --> 0:27:38.119 need with AI. 0:27:39.440 --> 0:27:42.840 How confident are you that Microsoft can make products that 0:27:42.880 --> 0:27:46.080 people really love and not just products that people need. 0:27:47.640 --> 0:27:50.320 You know that that has to do with a number 0:27:50.320 --> 0:27:54.200 of things, not the least of which is having talent 0:27:54.400 --> 0:27:59.000 that brings I'll call it the delight point of view. 0:27:59.600 --> 0:28:01.719 I think there needs to be a productivity. 0:28:01.200 --> 0:28:01.800 Point of view. 0:28:01.920 --> 0:28:04.399 I mean, that's important to get things done in the world, 0:28:04.920 --> 0:28:08.000 but there needs to be this sort of consumer delight thing. 0:28:08.080 --> 0:28:12.840 And you know, Sacha as we had to do. As 0:28:12.920 --> 0:28:14.840 Sacha has to do, you got to bring in the 0:28:14.920 --> 0:28:17.840 right kinds of talents. And Mustafa who's the CEO of 0:28:17.880 --> 0:28:20.920 the AI group, I think he's got that right kind 0:28:20.920 --> 0:28:25.040 of delight and personality if you will, to bring to 0:28:25.119 --> 0:28:27.560 the product. So yeah, I think it'll be a product 0:28:27.600 --> 0:28:30.280 that delights, not just helps you be productive. 0:28:30.280 --> 0:28:32.080 All right, there's a couple more questions, if you will. 0:28:32.880 --> 0:28:36.800 Microsoft caught so many technological waves. Sacha gives you credit 0:28:36.840 --> 0:28:40.160 for seeing the cloud, but the company missed. 0:28:39.840 --> 0:28:43.200 Mobile and social and search. Do you ever look back 0:28:43.240 --> 0:28:43.920 and think, what. 0:28:43.880 --> 0:28:51.520 If not too much? Actually did the company meet miss search? No, 0:28:52.360 --> 0:28:56.000 because all the stuff, including Sacha who worked on that stuff, 0:28:56.280 --> 0:28:58.960 all that stuff is now fundamental to what's going on 0:28:59.040 --> 0:29:02.520 in AI. So yes, there was a psychle of it. 0:29:02.600 --> 0:29:06.400 The company missed, and yet I'm super happy that the company. 0:29:06.440 --> 0:29:09.960 It enhances the company's position. The one I would would 0:29:10.040 --> 0:29:14.280 highlight is the intelligence that you carry with you, I e. 0:29:14.440 --> 0:29:14.960 Your phone. 0:29:15.760 --> 0:29:18.080 Now, well that change and will move to wearables. Yeah, 0:29:18.120 --> 0:29:20.720 I think probably that's true. That's the one I say. 0:29:21.680 --> 0:29:26.760 And I know why I we missed it missed, meaning 0:29:27.080 --> 0:29:29.440 we don't have a strong position and we have no 0:29:29.480 --> 0:29:34.240 position anymore. But I think that the company has really 0:29:34.320 --> 0:29:38.360 thrived despite that, and I'm proud of that. I'm proud 0:29:38.440 --> 0:29:41.080 of that. And you know, are there things that Sacha 0:29:41.160 --> 0:29:44.560 is missing right now? I'm sure you know, fifteen years 0:29:44.560 --> 0:29:47.240 from now, he'll look back and say I could have 0:29:47.280 --> 0:29:49.360 done that one sorry, oh shoot, could have done that 0:29:49.400 --> 0:29:49.920 one better. 0:29:51.120 --> 0:29:52.920 But he we'll bleep you out. 0:29:53.160 --> 0:29:54.080 Okay, last question. 0:29:54.520 --> 0:29:59.160 You're kind of like the heart of Microsoft. How does 0:29:59.280 --> 0:30:01.800 now come heard of the glory days? I mean, I 0:30:01.800 --> 0:30:04.160 see you jumping around on the basketball court and you're 0:30:04.160 --> 0:30:05.240 doing your philanthropy. 0:30:06.200 --> 0:30:07.600 Will anything really compare? 0:30:09.400 --> 0:30:13.000 Well? Yeah, I mean, look, I like to be excited. 0:30:13.440 --> 0:30:15.880 There was so much to be excited about at Microsoft. 0:30:15.880 --> 0:30:19.440 We're doing great things and you know, trying to really 0:30:19.520 --> 0:30:23.000 if you will be cheerleaders for a whole industry, and 0:30:23.040 --> 0:30:25.960 that was a lot of fun. Now I'm still cheerleader, 0:30:26.360 --> 0:30:29.080 I'm just cheerleading for a much smaller group of people. 0:30:29.680 --> 0:30:31.840 We're never going to have more than five guys playing 0:30:31.840 --> 0:30:35.600 at a time and probably fifteen people getting dressed. But 0:30:36.320 --> 0:30:38.880 you know, I love that. I love the energy, I 0:30:38.920 --> 0:30:42.400 love the complexity. You know, I'm very much not the 0:30:42.480 --> 0:30:45.280 person who's operating day to day, which I was here, 0:30:45.560 --> 0:30:47.280 and that that's kind of right for me at this 0:30:47.320 --> 0:30:51.800 phase of life. But you know, the intricacy thinking about 0:30:51.880 --> 0:30:55.920 things and then cheerleading. I still love that. 0:30:56.240 --> 0:30:58.720 I did see some footage of you jumping into Lake Bill, 0:30:58.920 --> 0:31:01.120 so I'm kind of wondering what we didn't see. 0:31:02.680 --> 0:31:03.760 Probably a ton. 0:31:04.920 --> 0:31:06.200 All right, Steve, that was awesome. 0:31:06.280 --> 0:31:17.520 Congratulations Developers, Developers, Developers, Developers, Developers, Developers, Developers, developers, developers, developers, developers, Developers. 0:31:18.560 --> 0:31:21.800 On May nineteenth, Microsoft held the opening keynote for BUILD, 0:31:21.920 --> 0:31:23.520 its annual developers conference. 0:31:24.040 --> 0:31:26.400 Good morning, and welcome to Build. 0:31:26.880 --> 0:31:28.880 To get an idea of what Microsoft was like when 0:31:28.920 --> 0:31:31.280 Sachiinadella took the helm, all you have to do is 0:31:31.360 --> 0:31:33.520 go back to the same keynote event from the year 0:31:33.560 --> 0:31:35.360 he became CEO in twenty. 0:31:35.120 --> 0:31:39.160 Fourteen, Windows Phone, Windows Phone and Windows Phones Windows Phone, 0:31:39.280 --> 0:31:40.200 Windows Phone eight. 0:31:40.040 --> 0:31:43.880 Point one, Windows Phone was mentioned over one hundred times. 0:31:44.440 --> 0:31:50.240 Just three years later, Zero sach An Adella successfully shed 0:31:50.280 --> 0:31:53.880 Microsoft of its fledgling consumer products and transform the company 0:31:53.880 --> 0:31:57.720 into a cloud infrastructure juggernaut with Azure. But this year 0:31:57.760 --> 0:32:00.280 there's a different product you'll here mentioned Endless. 0:32:00.400 --> 0:32:03.200 Cool Pilot, col Pilot, cool Pilot, co Pilot. 0:32:03.000 --> 0:32:06.480 Co Pilot, Microsoft's gateway to all things AI dominated this 0:32:06.560 --> 0:32:10.320 year's build keynote. It's clear where Microsoft is staking its future. 0:32:11.120 --> 0:32:13.959 I sat down with Nadella at Microsoft headquarters to discuss 0:32:14.000 --> 0:32:16.240 how he got started at the company and where he 0:32:16.280 --> 0:32:23.400 sees it going in the future. So good again, Thank 0:32:23.440 --> 0:32:25.520 you for doing this and thank you for coming up. 0:32:25.720 --> 0:32:28.880 It's been so fun going through fifty years of history. 0:32:29.200 --> 0:32:30.440 How does fifty feel to you? 0:32:30.560 --> 0:32:34.440 It feels young, be honest. 0:32:34.480 --> 0:32:36.320 Do you still get excited when you hear the Windows 0:32:36.320 --> 0:32:37.000 startups sound? 0:32:38.320 --> 0:32:38.800 Absolutely? 0:32:38.880 --> 0:32:40.280 I mean it's kind of like one of those it 0:32:40.280 --> 0:32:43.040 feels like, you know, without it, there is no day 0:32:43.280 --> 0:32:44.160 that you can start. 0:32:45.600 --> 0:32:45.920 Well. 0:32:46.240 --> 0:32:48.920 Some of among my favorite clips, I found this one. 0:32:49.960 --> 0:32:52.880 This is a classic throwback video. 0:32:53.680 --> 0:32:56.920 Four being a data my daughter makes a lot of fun. 0:32:57.560 --> 0:32:59.520 What I'm going to do now is exit out of this. 0:32:59.600 --> 0:33:03.840 And so you're a technical product manager here you're demoing Excel. 0:33:04.040 --> 0:33:06.680 Who's that guy, Like, what's he thinking at that time? 0:33:07.000 --> 0:33:09.560 Yeah, it's sort of like, it's it's funny that you 0:33:09.720 --> 0:33:12.240 mentioned that, because it is an Excel demo with a 0:33:12.480 --> 0:33:15.680 I think a dB two connector back to at that 0:33:15.840 --> 0:33:19.160 time a mini computer and it was the beginning of 0:33:19.160 --> 0:33:24.480 that client Silver era and the this last weekend, for example, 0:33:24.520 --> 0:33:27.000 I was thinking, God, like, what can I build today? 0:33:28.040 --> 0:33:31.640 And thanks to this get Up Copilot age, you know, 0:33:31.720 --> 0:33:35.200 I went and built. In fact, you know, recreated what 0:33:35.320 --> 0:33:38.120 Bill had done with the Altair, which is the basic interpreter, 0:33:38.240 --> 0:33:40.320 except that he I guess he had to spend multiple 0:33:40.560 --> 0:33:42.880 nights to do that, and we were now we can 0:33:42.920 --> 0:33:45.800 do it thanks to Get Up Copilot in minutes and 0:33:46.160 --> 0:33:50.760 that excitement of being able to use technology to create 0:33:50.800 --> 0:33:54.160 more technology. I think it's what brought me to Microsoft, 0:33:54.240 --> 0:33:56.960 has got me to do what I was doing at Microsoft, 0:33:57.000 --> 0:33:58.960 and is sort of what keeps me at Microsoft. I 0:33:58.960 --> 0:34:02.080 think that's sort of uniquely a very microsoft Y thing 0:34:02.160 --> 0:34:04.040 to do, which is it's not just. 0:34:04.040 --> 0:34:05.160 That tech we build. 0:34:05.880 --> 0:34:09.200 It's how the tech we build allows others to build 0:34:09.239 --> 0:34:09.760 more tech. 0:34:10.000 --> 0:34:12.400 That's I think who we are at our core DNA. 0:34:12.719 --> 0:34:14.520 Did that guy have any idea he'd be running the 0:34:14.520 --> 0:34:15.480 place a chance? 0:34:15.760 --> 0:34:18.120 I was like hoping to stay there in my job 0:34:18.280 --> 0:34:20.720 for the next month if I could, I was lucky 0:34:20.800 --> 0:34:24.400 enough to get hired. It was you know, you know, 0:34:24.600 --> 0:34:27.600 there was no you know, there was no notion that 0:34:27.880 --> 0:34:30.919 you know, I'll ever get to anything other than enjoy 0:34:31.000 --> 0:34:32.960 the job. But that's probably the thing that I never 0:34:33.000 --> 0:34:36.480 felt any job I was doing at Microsoft somehow was 0:34:37.200 --> 0:34:39.759 a path to the next job. The job I was 0:34:39.800 --> 0:34:42.000 doing was like the most exciting thing that I could 0:34:42.000 --> 0:34:44.560 be doing, and I gave it at all, and the 0:34:44.560 --> 0:34:45.360 rest is history. 0:34:45.600 --> 0:34:48.919 You are credited with leading Microsoft's comeback, and you came 0:34:48.960 --> 0:34:50.760 in as kind of a wartime CEO. 0:34:51.640 --> 0:34:53.839 Is it peacetime now or is it still war? 0:34:54.480 --> 0:34:57.760 I mean those metaphors are interesting to me. I feel 0:34:57.760 --> 0:35:01.680 like the Microsoft I grew up in was that there 0:35:01.719 --> 0:35:05.040 was no such thing as oh wow, we want anything. 0:35:07.320 --> 0:35:11.239 All through the errors from ninety two on, we felt like, 0:35:11.280 --> 0:35:15.200 oh my god, the entire platform is shifting underneath us. 0:35:15.239 --> 0:35:17.960 We better do something otherwise. We were going to disappear, 0:35:18.080 --> 0:35:20.759 right the web. I mean I would say maybe for 0:35:20.840 --> 0:35:24.680 a brief moment in client server we felt like, ohow, 0:35:24.760 --> 0:35:27.440 we got it, and then the web happened, and then 0:35:27.440 --> 0:35:29.760 we had to adjust to the web, and then mobile 0:35:29.800 --> 0:35:33.040 and cloud happened, and now of course AI is happening. 0:35:33.080 --> 0:35:35.600 And so at least the core DNA and the core 0:35:35.760 --> 0:35:40.719 posture I've had throughout my thirty two years at Microsoft 0:35:41.200 --> 0:35:45.360 is we better, we better get our act together to 0:35:45.440 --> 0:35:48.600 make sure we're learning fast enough about what the next 0:35:48.600 --> 0:35:51.919 big thing is and then really be doing relevant things 0:35:52.000 --> 0:35:54.920 in it. So I would say, so I hate the wartime, 0:35:54.960 --> 0:35:57.600 peace time, but it's all about hey, are we being 0:35:57.680 --> 0:36:02.000 relevant in the future. The only way to survive, I 0:36:02.040 --> 0:36:04.440 think in tech industry, which is pretty harsh, there is 0:36:04.480 --> 0:36:06.520 no such thing as franchise value, right, I mean, that's 0:36:06.560 --> 0:36:09.160 the hard part of it, and so you got to 0:36:09.200 --> 0:36:11.880 give it you hope you succeed, and you got to 0:36:11.880 --> 0:36:13.479 take lots of shots on goald. 0:36:13.520 --> 0:36:14.680 Do you got to stay paranoid? 0:36:15.400 --> 0:36:17.120 Yeah, it's kind of that. That's one way to think 0:36:17.120 --> 0:36:20.160 about it, or stay excited. Maybe that's another way, Like 0:36:20.200 --> 0:36:23.320 paranoia is one motivation, the other one is to say, wow, 0:36:23.520 --> 0:36:27.160 what got you in here? Forget the success for a second, 0:36:27.239 --> 0:36:30.920 and then more importantly, just have the curiosity and stay 0:36:30.920 --> 0:36:32.760 optimistic about the future. 0:36:32.800 --> 0:36:34.000 Maybe that's the way to do it. 0:36:34.400 --> 0:36:37.640 You obviously have a booming enterprise business when you look 0:36:37.640 --> 0:36:40.680 at what Google is doing in Apple and Meta and Amazon, 0:36:41.360 --> 0:36:44.319 how important is it to you to win in consumer 0:36:44.640 --> 0:36:46.799 AI and how do you do that? 0:36:46.800 --> 0:36:47.560 That's a great question. 0:36:47.600 --> 0:36:51.879 So to me, the Microsoft again that I've grown up with, 0:36:52.040 --> 0:36:55.920 we never actually thought of consumer and enterprise is two 0:36:55.960 --> 0:36:56.640 distinct things. 0:36:56.719 --> 0:36:58.960 We sort of thought of the category. 0:36:58.480 --> 0:37:02.920 Knowledge work or productivity, right, Like you know, we build 0:37:03.040 --> 0:37:07.680 tools that spanned consumer and enterprise. It's just that the 0:37:07.760 --> 0:37:12.320 consumer market has expanded a lot, or consumer tech market 0:37:12.320 --> 0:37:16.040 has expanded in many categories, and that's fantastic. But to me, 0:37:16.160 --> 0:37:17.960 I want us to play to our strength. Like if 0:37:17.960 --> 0:37:20.480 I look at even what we're doing with co pilot, right, 0:37:20.840 --> 0:37:23.279 how do we build a cop pilot that is the 0:37:23.320 --> 0:37:27.440 new browser effectively in this intelligence era that has a 0:37:27.600 --> 0:37:29.680 unique characteristic of. 0:37:29.640 --> 0:37:30.600 That is Microsoft. 0:37:30.719 --> 0:37:32.879 Right, whether it's you know, hey helping you with your 0:37:33.000 --> 0:37:37.120 travel planning or whether it's shopping or with your homework. 0:37:37.440 --> 0:37:40.600 But do it in a way that it uniquely telegraphs 0:37:40.640 --> 0:37:43.319 what I think Microsoft's signature would be in it, in 0:37:43.400 --> 0:37:45.920 what is going to be a new way to litigate 0:37:45.960 --> 0:37:47.240 what is the consumer market? 0:37:47.920 --> 0:37:50.440 As we saw with search in your competition with Google, 0:37:50.480 --> 0:37:53.320 sometimes you just can't fight the verb. It's habit forming 0:37:53.320 --> 0:37:57.600 and chat GBT is the verb right now. So how 0:37:57.680 --> 0:38:01.279 much do you worry that Microsoft loses the mind share game? 0:38:02.120 --> 0:38:05.960 First thing, I'm very thrilled about Chad Jepet's success. You know, 0:38:06.080 --> 0:38:11.359 as partners, as investors, as you know, we every day 0:38:11.360 --> 0:38:14.520 the chat jept succeeds is a fantastic day for micro. 0:38:14.440 --> 0:38:16.360 Right every day you should every time you search on 0:38:16.440 --> 0:38:18.440 chat gpt, Microsoft makes money. 0:38:18.560 --> 0:38:21.399 Yeah, and it's by the way, powered by being and 0:38:21.480 --> 0:38:25.760 so so to me, it's fantastic to see chat jepet success, 0:38:25.800 --> 0:38:29.080 and in some sense it really improves the point that 0:38:29.440 --> 0:38:32.759 you know, markets can evolve and new hit products can 0:38:32.800 --> 0:38:35.040 be created from anywhere and what have you. And so 0:38:35.080 --> 0:38:37.360 that is what gives us even the unique opportunity with 0:38:37.440 --> 0:38:40.040 co pilot right, which is essentially to say in a 0:38:40.080 --> 0:38:42.440 world where a new category is being born, which is 0:38:42.560 --> 0:38:48.440 these new agents, these agents will have memory, will have personalization, Essentially, 0:38:48.480 --> 0:38:50.080 you can even think of it as the beginning of 0:38:50.120 --> 0:38:53.520 a new browser category. And there are lots of people 0:38:53.560 --> 0:38:56.319 who are going to enter the browser categories. We all 0:38:56.360 --> 0:39:00.959 have unique strengths and angles of differentiation and distribution even 0:39:01.000 --> 0:39:04.040 and so time will tell. But I must say I'm 0:39:04.080 --> 0:39:06.880 thrilled that chat, GPT and Copilot are some of the 0:39:06.960 --> 0:39:09.600 leading products out there well. 0:39:09.640 --> 0:39:12.759 And Microsoft is building its own models. Open ai is 0:39:12.800 --> 0:39:15.960 making other friends. And your partnership ends in twenty thirty 0:39:16.280 --> 0:39:19.040 Are you trying to tell the kids that maybe this 0:39:19.160 --> 0:39:20.840 marriage isn't forever? 0:39:21.800 --> 0:39:24.520 See again, this is another thing I've learned in the 0:39:24.600 --> 0:39:27.879 last fifty years is you know, you approach all partnerships 0:39:27.920 --> 0:39:30.719 and create long term, stable partnerships which are win win, right. 0:39:30.800 --> 0:39:33.319 You know, we for decades are partnered with Intel. For 0:39:33.360 --> 0:39:36.480 a decade, we're partnered with SAP. That's at least the 0:39:36.520 --> 0:39:39.239 Microsoft I've grown up in. So I hope that for 0:39:39.360 --> 0:39:42.399 decades to come, Microsoft and open Ai will be partnered. 0:39:42.080 --> 0:39:43.360 In a variety of different ways. 0:39:43.719 --> 0:39:46.680 Will they have other partners absolutely, Will we have other 0:39:46.760 --> 0:39:51.879 partners absolutely? And so therefore I think we overstate all 0:39:51.920 --> 0:39:53.200 of these things as zero sum. 0:39:53.320 --> 0:39:54.799 They don't necessarily need to be. 0:39:54.920 --> 0:39:58.680 Microsoft wouldn't be here fifty years in as successful as 0:39:58.719 --> 0:40:00.480 we are if we had not learned and how to 0:40:00.520 --> 0:40:03.440 partner well in these long term stable constructs. 0:40:03.480 --> 0:40:05.799 But the relationship is changing, right, Like, how is it 0:40:05.880 --> 0:40:07.560 changing and what happens when that deal is. 0:40:07.600 --> 0:40:10.120 I think any company that has gone from being a 0:40:10.160 --> 0:40:13.440 research lab to one of the most successful product companies 0:40:13.480 --> 0:40:16.799 of this age, obviously things have to change for them 0:40:16.880 --> 0:40:19.520 and for us, and in the context of the partnership, right, 0:40:19.520 --> 0:40:23.560 So therefore I look at it. We're investors in open 0:40:23.600 --> 0:40:26.839 AI and we're thrilled about that. We are we have 0:40:26.920 --> 0:40:29.480 IP rights, We're thrilled about that access. 0:40:29.520 --> 0:40:32.280 We are infrastructure providers. 0:40:32.280 --> 0:40:36.040 They are the biggest customers of ours, and so to us, 0:40:36.200 --> 0:40:39.960 having that multifaceted sort of partnership is what we are 0:40:40.000 --> 0:40:42.640 really focused on. And I do think in their lives 0:40:42.760 --> 0:40:45.319 the long term stability of it, right, which is every 0:40:45.400 --> 0:40:47.359 day they're doing well, we're doing well, and if you're 0:40:47.400 --> 0:40:49.319 doing well, they're doing well. So why would any one 0:40:49.320 --> 0:40:50.960 of us want to go upset. 0:40:50.560 --> 0:40:54.200 That so many companies are doing more with less. I've 0:40:54.239 --> 0:40:57.200 heard some tech companies are thinking, maybe we won't need 0:40:57.200 --> 0:40:59.319 to hire you and your engineers. If AI can do 0:40:59.400 --> 0:41:02.719 their jobs, you employ more than two hundred thousand people 0:41:02.840 --> 0:41:03.320 right now. 0:41:03.560 --> 0:41:05.120 Is it half that in the future. 0:41:05.600 --> 0:41:07.279 I think it's kind of interesting. So I think what 0:41:07.320 --> 0:41:10.680 we have to do is separate out that's broadly the 0:41:10.800 --> 0:41:15.359 knowledge work we do today and the knowledge worker. If 0:41:15.400 --> 0:41:18.200 you sort of say, well, there are two different things. 0:41:18.280 --> 0:41:23.399 Knowledge work will have a different level of abstraction and 0:41:23.880 --> 0:41:26.160 you will be able to then get more done. 0:41:26.400 --> 0:41:28.320 That means the company can be more productive. 0:41:28.360 --> 0:41:29.920 So to me, like, I'll give you an example of 0:41:29.960 --> 0:41:32.680 what we've done in terms of a structural change in LinkedIn. 0:41:33.400 --> 0:41:36.560 We have front end engineers, we have designers, we have 0:41:36.600 --> 0:41:40.160 product managers. So what you know the LinkedIn team has 0:41:40.200 --> 0:41:43.040 done is taken all of them and said they're full 0:41:43.120 --> 0:41:45.799 stack builders now. And so in some sense, what it's 0:41:45.840 --> 0:41:48.920 created is more capacity for that team to be able 0:41:48.960 --> 0:41:52.799 to conceive and you know, and deliver more products for 0:41:52.960 --> 0:41:56.279 more customers than ever before. So I think I look 0:41:56.280 --> 0:41:58.799 at the iteam like one of the things about software engineering, right, 0:41:58.960 --> 0:42:01.040 you know, get Up I think is on course to 0:42:01.200 --> 0:42:03.960 maybe a couple of hundred million users and on course 0:42:04.000 --> 0:42:07.000 to a billion user dream. And so you say, well, 0:42:07.080 --> 0:42:10.600 does the world need a billion software developers. Absolutely. I 0:42:10.600 --> 0:42:13.800 look at the IT backlogs everywhere and all the apps 0:42:13.800 --> 0:42:15.759 that need to be built, and so I think think, 0:42:15.800 --> 0:42:18.319 thanks to get up copilot first, more people can get in, 0:42:18.640 --> 0:42:21.680 more people can complete task how you build the applications. 0:42:21.880 --> 0:42:26.479 So this abundance will drive actually the you know, will 0:42:26.680 --> 0:42:29.319 fulfill the demand that is not being fulfilled today. 0:42:30.600 --> 0:42:33.200 The emergence of deep Seek from China, you told your 0:42:33.200 --> 0:42:36.520 team to quickly integrate it into Azure. Open ai is 0:42:36.520 --> 0:42:39.640 saying it should be banned, it's stay controlled. Why don't 0:42:39.680 --> 0:42:42.160 you think it's a risk, and what do you think 0:42:42.200 --> 0:42:43.520 of China's role in this fight? 0:42:43.880 --> 0:42:46.200 I think, first of all, there are two very different things, right. 0:42:46.200 --> 0:42:48.719 One is there's the model and then there is the application, 0:42:48.840 --> 0:42:51.120 and I think that both have to be part separately 0:42:51.840 --> 0:42:55.640 for different you know, and people should opine and states 0:42:55.680 --> 0:42:58.080 should take action based on what they see. 0:42:58.280 --> 0:43:00.719 There is the The thing that I. 0:43:00.640 --> 0:43:05.080 Think about is they will always be leading closed source model. 0:43:05.160 --> 0:43:08.120 Open ai is one such example. They've done fantastic work. 0:43:08.120 --> 0:43:10.719 Obviously we're excited about sort of how they continue to 0:43:10.800 --> 0:43:13.600 quite frankly set the standard right because even deep Seek's 0:43:13.640 --> 0:43:16.560 innovation is mostly a catch up to what open ai 0:43:16.680 --> 0:43:19.920 had already delivered with one and three, and so I 0:43:19.960 --> 0:43:22.200 think that's kind of one side of it. The other 0:43:22.280 --> 0:43:24.320 side of it is there will always be open source, 0:43:24.719 --> 0:43:27.439 and if anything, what deep Seak has proven is open 0:43:27.480 --> 0:43:29.799 source can come from any place. In this case, it 0:43:29.840 --> 0:43:32.040 happens to come from China. The next model may come 0:43:32.080 --> 0:43:34.799 from some other country, it may come from the lab 0:43:34.840 --> 0:43:37.319 in the United States, it doesn't matter. But the rate 0:43:37.400 --> 0:43:41.799 of diffusion of this technology is such that in this 0:43:41.880 --> 0:43:45.239 industry we better sort of really face up to the 0:43:45.320 --> 0:43:48.000 fact that this is the rate of diffusion that's faster 0:43:48.080 --> 0:43:50.520 than anything before, and it's worldwide. 0:43:51.320 --> 0:43:53.560 And the last big algorithmic. 0:43:53.080 --> 0:43:56.600 Breakthrough or systems bake through or tech breakthrough has not 0:43:56.640 --> 0:43:57.279 happened yet. 0:43:57.680 --> 0:43:58.560 Let's talk about that. 0:43:58.600 --> 0:44:02.200 Because we're in this new computing era, tech giants including you, 0:44:02.239 --> 0:44:05.600 are spending trillions of dollars on building these AI data centers. 0:44:06.040 --> 0:44:06.880 Do you have any. 0:44:06.880 --> 0:44:09.960 Concerns about the size and scale of this bet like, 0:44:10.160 --> 0:44:12.680 are we building the future the right way? 0:44:13.080 --> 0:44:16.759 I think the scale is pretty stunning, right in the 0:44:16.800 --> 0:44:19.000 sense of I thought I joined a software company and 0:44:19.040 --> 0:44:22.120 here we are talking about tens, if not hundreds of 0:44:22.120 --> 0:44:23.360 billions or dollars of Capex. 0:44:23.400 --> 0:44:24.120 So what happened? 0:44:24.120 --> 0:44:27.160 I think the interesting thing, in an interesting way is 0:44:27.280 --> 0:44:31.560 we've used capex to amplify the effects of software and 0:44:31.640 --> 0:44:34.319 make it ubiquitous. That's kind of really it, right, which 0:44:34.360 --> 0:44:36.839 is when you think about tokens, which is a way 0:44:36.840 --> 0:44:38.880 to deliver intelligence per dollarp a. 0:44:38.960 --> 0:44:41.920 What that's the equation I obsess about. 0:44:41.680 --> 0:44:46.919 Our ability to generate that abundance of tokens has increased tremendously, 0:44:46.960 --> 0:44:48.880 and that's the supply side of it. And that's what 0:44:48.960 --> 0:44:51.239 a lot of people talk about, whether it is on 0:44:51.320 --> 0:44:54.040 the chip side, or on the data center side, or. 0:44:53.920 --> 0:44:57.280 On the power side. But the real test here, Emily, 0:44:57.440 --> 0:45:00.200 is what happens in the real economy. Right end of 0:45:00.239 --> 0:45:00.600 the day. 0:45:01.040 --> 0:45:03.000 It will be very evident to us, what is the 0:45:03.239 --> 0:45:05.960 GDP growth rate? You know, in the developed world or 0:45:06.000 --> 0:45:09.719 in the global South. Are we growing faster because of 0:45:09.719 --> 0:45:14.680 this new input we have called intelligence, which is abundant. 0:45:14.760 --> 0:45:18.200 Because when you have a new input whose prices effectively 0:45:18.239 --> 0:45:22.920 are falling by half every three months, six months, that's crazy, right, 0:45:23.000 --> 0:45:25.000 I mean this is so then you have to then 0:45:25.080 --> 0:45:30.120 translate that into health outcomes, education outcomes, small business productivity, 0:45:30.440 --> 0:45:35.360 public sector efficiency, large multinational competitiveness anywhere in the world, 0:45:35.680 --> 0:45:38.480 and that then parlays itself into GDP growth. So to me, 0:45:38.600 --> 0:45:41.480 the real test is not some benchmark or what have 0:45:41.640 --> 0:45:45.080 you a AI, it's one simple fact, which is when 0:45:45.080 --> 0:45:48.040 we start seeing higher growth rates around the world, and 0:45:48.120 --> 0:45:51.000 the benefits of that growth rate, by the way being 0:45:51.120 --> 0:45:55.879 much more broader cross sectorally and by economic strata, then 0:45:55.920 --> 0:45:57.320 I think you'd have achieved something. 0:45:57.760 --> 0:46:02.000 You've said, you won't be successful unless you're successor is successful. 0:46:02.200 --> 0:46:04.680 What is Microsoft in fifty years? 0:46:05.520 --> 0:46:08.360 You know, I'm mostly focused on what is Microsoft on 0:46:08.440 --> 0:46:11.040 the fifty first year? But I think you bring up 0:46:11.040 --> 0:46:13.000 a great point to me, and I think in any 0:46:13.040 --> 0:46:19.560 institution that succeeds, for a leader to have people who 0:46:19.560 --> 0:46:23.880 come after them who are most successful means that's probably 0:46:24.000 --> 0:46:29.719 the best testament to institutional strength that you may have 0:46:29.760 --> 0:46:34.360 built right, culturally, technologically, whatever it takes. But to me, 0:46:34.440 --> 0:46:36.400 that's I think a great way to measure even right. 0:46:36.440 --> 0:46:38.800 It's not like, you know, I'm always suspect when somebody 0:46:38.840 --> 0:46:41.880 comes in and says I'm the savior because everything before 0:46:41.960 --> 0:46:43.799 me was bad and I'm going to save it. 0:46:44.440 --> 0:46:46.520 First of all, I never believe that it's the case. 0:46:47.400 --> 0:46:50.520 And also I think, if I've done anything right, hopefully 0:46:50.560 --> 0:46:53.480 the next CEO and the CEO after them can do 0:46:53.719 --> 0:46:56.320 even better than what Microsoft has achieved. 0:46:56.360 --> 0:47:01.400 In the first fifty Microsoft changed the world? Will Microsoft 0:47:01.520 --> 0:47:02.320 change the world again? 0:47:02.880 --> 0:47:06.719 To me, that's you know what is exciting about Microsoft, 0:47:06.920 --> 0:47:09.919 And in the coredina of this company, I go back 0:47:09.960 --> 0:47:12.799 to that, you know, that founding moment. And I don't 0:47:12.840 --> 0:47:16.200 know what the thought was really right when Bill said, 0:47:16.239 --> 0:47:19.080 you know what, the software industry didn't exist, right, remember, 0:47:19.080 --> 0:47:20.960 I mean, so he kind of and he and Paul 0:47:21.120 --> 0:47:24.920 sort of said, oh, we should build software and hopefully 0:47:25.280 --> 0:47:27.600 we can monetize it and they will be an industry. 0:47:27.640 --> 0:47:28.440 I mean, it's crazy. 0:47:28.600 --> 0:47:29.680 Hopefully they will come. 0:47:29.880 --> 0:47:33.920 Yeah, and it all happened, and so that and but 0:47:33.960 --> 0:47:36.440 the the other thing about it, though, was that that 0:47:36.680 --> 0:47:39.239 core of what we want to build software so that 0:47:39.320 --> 0:47:43.120 others can create more software. That ability to think of 0:47:43.320 --> 0:47:47.399 us as an input to somebody else's output, whether it's 0:47:47.480 --> 0:47:50.920 knowledge work, whether it's software development, you pick your field. 0:47:51.520 --> 0:47:55.960 That I think is what is gives us relevance. And 0:47:56.239 --> 0:47:59.040 I always say this, longevity is not a goal. Relevance 0:47:59.239 --> 0:48:04.120 is and The framing of this company from nineteen seventy 0:48:04.160 --> 0:48:06.920 five to twenty twenty five has been the same, which is, 0:48:06.960 --> 0:48:10.520 can you do things that allow others to do more things. 0:48:10.880 --> 0:48:13.400 That's a beautiful way to frame it because then you 0:48:13.640 --> 0:48:16.160 know that'll be true always. 0:48:16.280 --> 0:48:19.279 If you could time travel to twenty seventy five, what 0:48:19.320 --> 0:48:20.400 advice would you give your. 0:48:20.239 --> 0:48:24.440 Successor I mean, the advice I got from Steve Bama 0:48:24.480 --> 0:48:26.560 when I took on the job is the advice that 0:48:26.640 --> 0:48:29.760 I think of all the time, which is be bold 0:48:30.040 --> 0:48:32.240 because if you're not bold, you're not going to do anything. 0:48:33.400 --> 0:48:36.600 And be right because if you're not right, you won't 0:48:36.680 --> 0:48:40.680 amount too much. And so that ability to sort of 0:48:40.719 --> 0:48:44.040 get past the statusco by really boldly thinking of a 0:48:44.080 --> 0:48:48.080 future that doesn't exist, but then executing right at the 0:48:48.160 --> 0:48:50.759 end of the day. Business is about being able to 0:48:50.920 --> 0:48:54.600 earn the stripes one step at a time. And I 0:48:54.600 --> 0:48:57.120 think that's what this company has exhibited, what it has 0:48:57.160 --> 0:48:59.680 taught me all through my career at Microsoft, which is 0:48:59.680 --> 0:49:00.040 you got. 0:49:00.080 --> 0:49:03.600 A dream and execute, Dream and execute, and that you. 0:49:03.520 --> 0:49:06.360 Know we're not gotten it always right, both either on 0:49:06.400 --> 0:49:08.919 the dream side or on the execution side, but on 0:49:09.160 --> 0:49:10.640 the batting average it's pretty good. 0:49:12.040 --> 0:49:15.400 You've talked about diversity and inclusion as a bedrock of 0:49:15.440 --> 0:49:16.200 company culture. 0:49:16.560 --> 0:49:17.960 You didn't go to the inauguration. 0:49:18.680 --> 0:49:21.920 How important is diversity and inclusion still to you as 0:49:21.960 --> 0:49:24.440 you build the next fifty Yeah, I mean. 0:49:24.320 --> 0:49:25.720 Just true for us. 0:49:26.680 --> 0:49:30.320 When I think about our mission of empowering every person 0:49:30.400 --> 0:49:33.719 in every organization around the world to achieve more, you 0:49:33.880 --> 0:49:38.399 have to then take the prosecution of that mission as 0:49:38.440 --> 0:49:41.680 the most important thing. And to prosecute that mission, you 0:49:41.760 --> 0:49:45.680 need to make sure you have people who represent that 0:49:45.840 --> 0:49:48.719 world in the company. It's not like we're doing I 0:49:48.800 --> 0:49:51.480 never thought of what we thought of diversity and inclusion 0:49:51.560 --> 0:49:54.560 is somehow separate from running our business. 0:49:54.760 --> 0:49:54.920 You know. 0:49:54.960 --> 0:49:57.320 I always think about the social purpose of a corporation 0:49:57.480 --> 0:50:00.960 is to create profitable solutions to the challenges of people 0:50:00.960 --> 0:50:04.319 in planet. And that's you know, an Oxford economist said 0:50:04.320 --> 0:50:07.440 that not me, and I like that definition, and to me, 0:50:08.000 --> 0:50:11.960 the keywords are being both profit and solutions to challenges 0:50:12.000 --> 0:50:14.000 of people in planet. So I think our mission is 0:50:14.040 --> 0:50:17.200 aligned with that social purpose, and in order to prosecute 0:50:17.239 --> 0:50:19.319 our mission, we just need to make sure that we 0:50:19.480 --> 0:50:23.759 have the people and the talent and the merit that 0:50:24.120 --> 0:50:27.480 all that talent represents and so we'll always have that approach. 0:50:27.640 --> 0:50:29.279 Okay, so we're going to do a quick rapid fire 0:50:29.320 --> 0:50:32.480 and now I'm looking for like one to three word answers. Okay, 0:50:33.200 --> 0:50:34.520 Microsoft's biggest hit. 0:50:36.719 --> 0:50:47.160 You know, Windows biggest miss, Clippy. It's just ahead of 0:50:47.160 --> 0:50:50.000 its time. It is just ahead of its time. It's 0:50:50.040 --> 0:50:50.600 back again. 0:50:51.280 --> 0:51:00.040 Biggest surprise, The biggest surprise. 0:51:00.960 --> 0:51:06.480 Was maybe maybe this open AI chat GPT right in 0:51:06.520 --> 0:51:10.040 my career and I look at it like when we 0:51:10.160 --> 0:51:12.839 launched it. Now, maybe maybe that's what was it, right, 0:51:12.880 --> 0:51:15.880 which is wow, that talking I mean like having a 0:51:15.960 --> 0:51:19.040 chat interface become a hit was a real surprise. 0:51:19.719 --> 0:51:22.040 A CEO, you'd love to trade jobs with. 0:51:23.800 --> 0:51:34.040 A CEO that I would trade with maybe the you 0:51:34.040 --> 0:51:34.640 know the. 0:51:36.640 --> 0:51:38.320 Maybe the CEO of Fred Hutch. 0:51:38.239 --> 0:51:44.360 Biggest future bet AI or Quantum. 0:51:42.200 --> 0:51:47.080 Both in fact, In fact, I think of AI as 0:51:47.480 --> 0:51:53.440 the emulator for what is the simulator of nature? Right, 0:51:53.480 --> 0:51:56.480 So in some sense, Quantum's dream is to be the 0:51:56.520 --> 0:51:59.920 simulator of the nature, and AI helps us actually be 0:52:00.080 --> 0:52:01.279 the emulator for it. 0:52:01.360 --> 0:52:03.440 The hardest lesson you've learned as CEO. 0:52:03.560 --> 0:52:08.080 I think the hardest one is to be able to 0:52:08.960 --> 0:52:14.480 really live that, right, the deliver the present and then 0:52:14.600 --> 0:52:17.320 prepare for the future. That ability, Like, as a CEO, 0:52:17.360 --> 0:52:19.160 what is it that you have to do each quarter? 0:52:19.239 --> 0:52:20.320 You have to create magic? 0:52:21.440 --> 0:52:23.720 Right, that's kind of what every ninety days the market 0:52:23.800 --> 0:52:25.840 expects you to create magic, and that's kind of the 0:52:25.880 --> 0:52:28.360 reality of the world we live in while at the 0:52:28.400 --> 0:52:29.560 same time building. 0:52:29.239 --> 0:52:30.400 A long term institution. 0:52:30.680 --> 0:52:32.400 And so I think that that's I think, and the 0:52:32.440 --> 0:52:36.520 accountability that goes with it, even you know, I must say, 0:52:36.560 --> 0:52:39.240 even one step removed and not understood it as well 0:52:39.360 --> 0:52:41.759 as the last eleven years of being able to sort 0:52:41.760 --> 0:52:45.400 of understand what it takes to have that ultimate accountability 0:52:46.120 --> 0:52:49.120 to both deliver today and for tomorrow and to be 0:52:49.120 --> 0:52:50.359 able to get that balance right. 0:52:50.560 --> 0:52:53.040 All right, Well, here's to tomorrow in the next fifty years. 0:52:53.080 --> 0:52:55.120 Thank you so much, as Satya, thank you so much. 0:52:55.440 --> 0:52:56.680 I appreciate it. 0:53:06.320 --> 0:53:08.520 If you'd like to watch our deep dive into Microsoft 0:53:08.520 --> 0:53:11.680 on their fiftieth anniversary, check out the circuit on Bloomberg 0:53:11.719 --> 0:53:14.759 TV or the Bloomberg Originals channel on YouTube. You'll hear 0:53:14.800 --> 0:53:17.640 from all three CEOs, as well as Microsoft Vice chair 0:53:17.680 --> 0:53:22.200 and President Brad Smith and Microsoft AI CEO Mustafa Suliman. 0:53:22.960 --> 0:53:26.000 It's a big episode full of lots of great stuff, 0:53:26.000 --> 0:53:29.800 so definitely go watch it. This has been the Circuit podcast. 0:53:30.280 --> 0:53:32.600 If you'd like to hear more extended interviews like this, 0:53:32.760 --> 0:53:35.360 please rate and review our show on Apple Podcasts or 0:53:35.400 --> 0:53:38.680 Spotify or wherever you get your podcasts, or you can 0:53:38.719 --> 0:53:41.480 always just share it with a friend. Our senior producer 0:53:41.520 --> 0:53:44.360 is Lauren Ellis, our writer and editor is Billy Disney, 0:53:44.600 --> 0:53:47.520 and I'm Emily Chang, your host and executive producer. 0:53:47.880 --> 0:53:48.680 Thanks for listening.