Satya Nadella's annual letter to shareholders.

Microsoft CEO Satya Nadella has shared his annual letter to shareholders about Microsoft's vision and progress in ushering in a new era of AI. He talks about other companies using Microsoft’s AI products, the history of building these and what lies ahead.

What's going on here?

Nadella believes we are entering a transformational new age of AI and is positioning Microsoft to lead the way responsibly.

What does this mean?

Microsoft sees two key breakthroughs enabling this AI era - natural language interfaces and more powerful reasoning capabilities. Together, these will reshape software and businesses across the board. Microsoft aims to infuse AI throughout its stack and products to empower every person and organization.

As per Nadella, Microsoft is already applying AI across its business solutions, applications, infrastructure, and industry offerings. This includes tools like GitHub Copilot, Dynamics 365 Copilot, and Azure OpenAI Service.

Microsoft believes it has a unique opportunity and responsibility to democratize this technology while also building it responsibly. The latter half of the letter talks mostly about upskilling people, gaining trust and protecting fundamental rights.

Why should I care?

These developments matter because AI has huge potential to boost productivity and address major global challenges. But the technology also carries risks around bias, fairness and misuse which companies like Microsoft must proactively address. As a tech leader, Microsoft's moves will likely influence the entire industry. And to much extent, they already are—they’ve made Google dance.