Nadella: AI fundamentally alters software economics by introducing true marginal costs
Satya Nadella · Microsoft CEO Satya Nadella Live on TBPN · Oct 28, 2025 · at 21:12
Microsoft CEO Satya Nadella discusses how AI shifts the economic production function and development processes of software compared to previous platform transitions.
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“This one is interestingly enough, both a tech shift, a business model shift, because this is the first time you have marginal cost software that's not like COGS of the SaaS world, but true marginal cost. And three, the way you produce your artifact, your software is changing. So the product development process is completely getting ripped and replaced”
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