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Under Satya Nadella's leadership as CEO beginning in 2014, Microsoft made significant investments in artificial intelligence and used AI to power its Bing search engine and other products and services. Nadella believed AI would fundamentally change software, starting with search engines, and aimed to leverage Microsoft's strengths like Azure to compete with Google in the search market. A key part of Nadella's strategy was collaborating with other AI players through projects like TensorFlow.NET to advance AI development for all rather than focusing solely on competition.

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# Microsoft vs. Google: How Nadella Bet on Bing and AI

In 2023, Microsoft was a formidable force in the artificial intelligence (AI) industry, competing head-to-
head with Google, the undisputed leader in the field. Microsoft had made significant strides in
developing and deploying AI across its products and services, from Windows to Office to Azure. It had
also acquired several AI startups and companies, such as GitHub, the largest online platform for
developers, and OpenAI, the influential research organization co-founded by Elon Musk.

But one of the most surprising and ambitious moves by Microsoft was to challenge Google in its core
business: search. Microsoft had launched a new version of its Bing search engine, powered by OpenAI
technology, that aimed to deliver better search results, more complete answers, a new chat experience,
and the ability to generate content.

The man behind Microsoft's challenge against Google was Satya Nadella, who became the CEO of the
company in 2014. Nadella had a clear vision of making Microsoft an "AI-first" company, where AI would
be infused into every aspect of its business and culture. He also wanted to democratize AI, making it
accessible and affordable for everyone, not just a few elite companies or researchers.

Nadella believed that search was the largest and most important software category, and that AI was the
key to reinventing it. He said that "AI will fundamentally change every software category, starting with
the largest category of all – search". He also said that "today, we’re launching Bing and Edge powered by
AI copilot and chat, to help people get more from search and the web".¹

Nadella's strategy was to leverage Microsoft's strengths and assets, such as its cloud computing platform
Azure, its global network of data centers, its large and loyal customer base, and its diverse and talented
workforce. He also fostered a culture of innovation and collaboration within Microsoft, encouraging
engineers and scientists to experiment with new ideas and share their findings with the broader AI
community.

One of Nadella's boldest moves was to partner with OpenAI on a project called TensorFlow.NET, a cross-
platform framework for building and running AI applications. TensorFlow.NET was based on TensorFlow,
Google's popular open-source framework for deep learning, but it also supported .NET, Microsoft's
software development platform. The project aimed to bridge the gap between the two platforms and
enable developers to use the best of both worlds.

Nadella said that TensorFlow.NET would benefit both Microsoft and Google, as well as the entire AI
ecosystem. He said that the project was "a testament to our shared vision of democratizing AI and
empowering developers to create amazing experiences". He also hoped that the project would inspire
more collaboration and cooperation among AI players, rather than competition and confrontation.

Nadella's challenge against Google was not only driven by business goals, but also by personal passion
and curiosity for AI. He was fascinated by the potential of AI to enhance human capabilities and solve
some of the world's biggest challenges. He was also aware of the ethical and social implications of AI,
such as privacy

Source: Conversation with Bing, 5/1/2023

(1) Microsoft CEO Satya Nadella explains how Bing with AI is better than ....
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(2) Reinventing search with a new AI-powered Microsoft Bing and Edge, your ....
https://blogs.microsoft.com/blog/2023/02/07/reinventing-search-with-a-new-ai-powered-microsoft-
bing-and-edge-your-copilot-for-the-web/.

(3) Microsoft targets Google’s search dominance with AI-powered Bing ....
https://www.ft.com/content/2d48d982-80b2-49f3-8a83-f5afef98e8eb.

(4) Microsoft CEO Satya Nadella calls A.I. search biggest thing in ... - CNBC.
https://www.cnbc.com/2023/02/07/microsoft-ceo-satya-nadella-calls-ai-search-biggest-thing-in-15-
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