Microsoft Is AI's Back Office
Satya Nadella loves to promote AI, but where's the beef?
Microsoft’s (MSFT) revenue growth has largely come from price increases on its various subscription offerings and playing AI back office to OpenAI’s front office.
There’s nothing wrong with Azure playing a back office / tech support role to OpenAI, but that’s not how MSFT CEO Satya Nadella positions the Redmond giant. Nadella positions Microsoft at the cutting edge of AI. I don’t see it that way. Copilot is a failure. Microsoft does not own OpenAI, so GPT is not seamlessly integrated into Microsoft’s application portfolio (nor is Microsoft partner Anthropic seamlessly integrated).
There’s nothing wrong with the businesses Microsoft is in, I just wish Nadella was more inward-facing on operations versus playing the promoter role, flitting around from podcast to podcast to Davos and back again.
Speaking of operations, CEORater released a new metric that tracks Revenue growth by CEO. Read about our RevCAGRScore (HERE) and the underlying data. CEORater remains only $99/month, less than $0.20 per CEO.