Dwarkesh Podcast Satya Nadella — How Microsoft is preparing for AGI
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Nov 12, 2025 
Satya Nadella, CEO of Microsoft, shares insights on the groundbreaking Fairwater 2 datacenter, capable of massive AI training jobs. He discusses how Microsoft is adapting its business models for AGI, emphasizing AI's transformative potential and sustainable growth. Nadella highlights innovations like GitHub Copilot, the importance of data diversity, and the balance between research and product development. Dylan Patel, founder of SemiAnalysis, probes into Microsoft's hyperscale strategy, custom silicon plans, and the significance of trust in cloud commitments.
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Tools Becoming Agent Infrastructure
- End-user tools (M365) will evolve into infrastructure that provisions compute for autonomous AI agents.
- Microsoft expects per-agent provisioning, identity, security, and observability to become core infrastructure products.
Mix OpenAI Use With Focused MAI Build
- Use OpenAI models where they add value and build proprietary MAI models where product needs demand latency or cost optimization.
- Avoid duplicative large training spend; optimize flops across GPT family and MAI investments.
Products Drive Model Integration
- Microsoft is assembling a world-class model team and will support multiple frontier models in its products.
- Product outcomes and vertical needs will guide which models get integrated and optimized.