Nadella: Microsoft Partnered With CoreWeave to Catch Up to ChatGPT Demand
Satya Nadella · Satya Nadella | BG2 w/ Bill Gurley & Brad Gerstner · Bg2 Pod · Dec 12, 2024 · at 1:09:02
Bill Gurley asks Microsoft CEO Satya Nadella why Microsoft leased compute infrastructure from specialized cloud provider CoreWeave.
0:00 / 0:41exact quote · 41.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“That, that we did because we all got caught with the hit called ChatGPT and OpenAI APIs, right? Yeah, we were completely, I mean, like, yeah, it was impossible. There's no supply chain planning I could have done in you know, what is it, you know, like none of us knew what was going to happen, right? What happened in November of 22, like that was just a, Bold from the blue, right? So therefore, we had to catch up. So we said, hey, we're not going to, in fact, worry about too much inefficiency. So that's why, whether it's Coldweave or many others, you know, we bought all over the place.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Satya Nadella
Nadella: Microsoft refused OpenAI requests for dedicated multi-gigawatt compute clusters
“Sometimes you may have to say no to some of the demand, including some of the open AI demand, right? Because sometimes, you know, Sam may say, hey, build me a dedicated, you know, big, you know, whatever, multi-gigawatt data center in one location for training…”
Nadella: Business apps will collapse as AI agents replace business logic
“That's probably where they'll all collapse, right, in the agent era, because if you think about it, right, they are essentially CRUD databases with a bunch of business logic. The business logic is all going to these agents.”
Nadella: Traditional SaaS Apps Will Collapse into AI Agent Logic Tiers
“The SaaS applications, or biz apps, so let me just speak of our own dynamics thing. The approach, at least, we're taking is, I think the notion that business applications exist That's probably where they'll all collapse, right, in the agent era, because if you…”
Nadella confirms Microsoft owns approximately 27% of OpenAI on diluted basis
“Yeah, it does. But I would say before even our stake in it, Brad, I think what's pretty unique about OpenAI is the fact that as part of OpenAI's process of restructuring, one of the largest nonprofit gets created.”
Nadella: Microsoft's bottleneck is power and warm shells, not chip supply
“Quite frankly, the biggest issue we are now having is not a compute blood, but it's a power, and it's sort of the ability to get the bills done fast enough close to power. So if you can't do that, you may actually have a bunch of chips sitting in inventory tha…”
Nadella: Microsoft's $13.5B OpenAI investment was equity, not booked as Azure revenue
“Our investment of let's say that 13 and a half, which was all the training investment, that was not booked as revenue. That is the reason why we have the equity percentage. That's the reason why we have the 27% or a hundred and thirty-five billion. So that was…”